ST. PAUL – Legislation Rep. Lisa Demuth, R-Cold Spring, has authored to make childcare more affordable for Minnesotans is part of a $1 billion package of tax relief House Republicans unveiled Monday.
Demuth’s proposal would help families dealing with high childcare expenses by increasing the income threshold for the dependent-care credit from the current cap of $52,160 to $75,000, making thousands more families eligible for assistance paying childcare bills.
“This issue of high childcare costs is something legislators hear about all over the state,” Demuth said. “Many families are struggling to afford childcare, which is why we’re proposing to expand eligibility for the childcare tax credit – sometimes called the dependent care credit.”
Demuth said that, with Minnesota’s strong economy and a $1.5 billion budget surplus, the time is right to provide tax relief for families who use childcare and beyond.
“Our state’s surplus represents an over-collection from taxpayers and it’s time to provide relief,” Demuth said. “In addition to my childcare bill, we should end the state tax on social security and the proposal we put forward does that. It is exciting to think about what a game-changer that would be for our seniors, especially those on fixed incomes. Minnesota is in the slim minority that taxes social security and this is our chance to fix that, making our state more welcoming to retirees.”
The House Republican proposal provides relief to a wide swath of Minnesotans, from seniors to farmers, homeowners, Main Street businesses, college graduates with student loan debt. In addition to Demuth’s childcare bill, the package includes: