Middle-class families, farmers, seniors, veterans, college students all benefit from $2 billion in tax relief
ST. PAUL, MN—The Minnesota House approved the omnibus House Tax bill Wednesday with bipartisan support on a 74-58 vote. Representative John Petersburg, R-Waseca, issued the following statement regarding the bill:
"Our bill prioritizes tax relief for middle-class families so they can keep more of their hard-earned money," Petersburg said. "This bill will put more money in the pockets of middle-class families, seniors, farmers, veterans, and college students. Minnesota's economy does best when Minnesotans are able to keep and spend more of their hard earned money, and when government spending is kept in check so it doesn't grow faster than family budgets."
Highlights of the tax bill include:
• 2,045,000 Minnesotans could receive relief through a NEW state version of the personal or dependent exemption on tax returns equal to 25 percent of the federal exemption.
• 366,500 aging adults living on fixed income could receive relief from the phasing-out of the tax on social security.
• 240,000 farmers could receive relief through a property tax credit that reduces their disproportionate share of school district debt service.
• 130,000 families with pre-kindergarteners could receive relief through the expansion of the education deduction to include pre-kindergarten expenses.
• 109,500 college students could receive student loan debt relief through a NEW tax credit for principal and interest loan payments on student loans.