Dear neighbors,
State lawmakers in the Minnesota House of Representatives are already taking swift action to build on the progress Minnesota made over the past year.
On the first day of the 2014 Session, I testified before the House Taxes Committee to talk about legislation I’ve authored to repeal three new business-to-business taxes. A few days later, the same committee promptly passed a $500 million tax cut package that repeals the business-to-business taxes and provides additional tax relief for middle class Minnesotans by enacting federal tax conformity.
Enacting federal conformity would simplify our state tax code and get rid of unnecessary burdens like the “marriage penalty.” According to the non-partisan House Research Department, eliminating the marriage penalty alone would save 650,000 families an average of $120 per year. I’m optimistic our entire chamber will pass this tax cut package soon and quickly send it to Governor Dayton to be signed into law.
Our first week back in Session ended on a positive note last Friday when Minnesota Management and Budget released an updated budget forecast showing a $1.2 billion surplus for the current biennium and a $2.6 billion surplus in the next biennium.
Minnesota’s strong fiscal outlook is a stark contrast from where we stood one year ago, when our state faced a $627 million budget deficit and owed our schools over $800 million in debt. Thanks to the new honestly balanced budget we passed last year, along with a productive year from our talented workforce and outstanding businesses, we’ve made important progress.
With Minnesota on strong financial footing for the first time in years, we are well positioned to build on that progress and continue growing our economy through middle class tax cuts while also maintaining a fiscally responsible and structurally balanced budget into the future.
Please stay in touch over the coming weeks by sharing your questions, comments, and ideas. You can reach me by phone at (651) 296-7153 or by email at rep.jason.isaacson@house.mn.
Sincerely,
Jason ‘Ike’ Isaacson
State Representative, District 42B