ST. PAUL – Following the release of House budget targets last week, Assistant Majority Leader Michael Nelson expressed his satisfaction with the focus on Minnesotans' top priorities.
"This budget proposal makes sure our children have health care, gives schools needed funding, and most importantly provides real, long-term property tax relief," Nelson said. "$535 million in direct relief goes right to homeowners and small businesses in every part of Minnesota."
Nelson said providing property tax relief for all Minnesotans results in a much fairer tax system. The proposal generates revenue to cover the budget numbers in three ways. Tighter tax compliance aimed at collecting every available tax dollar due the state, and closing tax loopholes from Foreign Operating Corporations will generate a significant portion of the revenue. In addition, a fourth income tax tier for the state's wealthiest citizens will be created for couples earning more than $400,000 thousand (after deductions) and individuals earning more than $226,000 after deductions.
"This is a responsible budget that doesn't put the burden on the backs of property tax payers, and promotes fairness in the way we fund our highest priorities," said Nelson. "Every dollar generated by this new tax bracket will be used for property tax relief."
With budget targets in place, House finance committees now begin work on their final budget bills.