Dear Neighbor,
The 2017 legislative session is now underway. It is nice to be back at the Capitol so we can start tackling the many challenges that have been awaiting action.
Our top responsibility this session will be to shape a new two-year state budget. As a numbers guy, I really look forward to that project and am pleased my vice chairmanship with Ways and Means will allow me to be at the forefront of that process. I also am serving Civil Law and Data Practices; Job Growth and Energy Affordability Policy and Finance; and State Government Finance committees this biennium.
The biggest news from the House this week is that we already have made progress on one of our core priorities this session: providing tax relief. On Thursday, just the third day of the session, we fast-tracked into passage $21.7 million in immediate tax relief for Minnesotans by bringing the state’s tax code into compliance with federal provisions. Nonpartisan officials indicated this move was necessary by Jan. 11 in order for tax software programs to be updated in time for citizens to take advantage of these breaks during the upcoming tax season.
Key provisions of the bill (H.F. 2), which now is in the hands of the Senate include:
- Providing deductions for higher education expenses
- Providing deductions for teacher classroom expenses up to $250
- Excluding compensation from taxable income for those who were wrongfully incarcerated
- Eliminating the need for two sets of depreciation schedules for those who purchase work equipment
- Providing an itemized deduction for mortgage insurance premiums
- Excluding from gross income loan forgiveness on home foreclosures
- Allowing the tax paid on high-cost employer health care coverage to be claimed as an itemized deduction
This is a good start to the session, but it also is just the very first step in tax relief that is planned. Look for more proposals from the House as the session unfolds.
Another major issue this session is reducing the soaring costs of health insurance. The House on Thursday moved to declare urgency and conduct a vote on the 2017 Health Care Emergency Aid and Access bill (H.F. 1), which would provide premium relief, extend access to doctors for continuity of care, and begin to reform the individual market. Unfortunately, Democrats blocked the parliamentary procedure required to expedite this bill despite agreeing to do so just days earlier. My hope is the bill can quickly move through the process so people can better plan their finances knowing there is some help to defray what can be bills of up to $50,000 annually for family medical costs
I will provide more news on these and other subjects as the session advances. Until then, your correspondence always is welcome.
Sincerely,
Bob