Lang, Senate Pass Biggest Tax Cut Ever to Provide Financial Relief Across the State
MN Senate Republican Caucus
Posted: April 7, 2022
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With inflation reaching its highest point in nearly 40 years, working Minnesotans are being pressured more every day by soaring prices for gas, groceries, and energy. Senate Republicans today made good on an early session promise to give back Minnesota’s historic $9 billion budget surplus with the largest permanent tax cut in state history.
The Senate today passed a landmark tax cut bill that reduces the first-tier tax rate for all filers from 5.35% to 2.80%, and fully eliminates the state income tax on all Social Security benefits. The bill provides taxpayers with a staggering $8.43 billion in relief over the next three years.
“Working families have waited long enough for tax relief—our state is still one of the highest taxed states in the country, and our staggering $9 billion surplus is proof that folks have been over-taxed for far too long. It’s time for us to provide meaningful and permanent tax relief, and it’s time for us to eliminate the antiquated social security income tax. Today, we’re putting Minnesotans first by providing economic relief that keeps more money in taxpayers’ pockets,” said Senator Andrew Lang (R-Olivia).
Minnesota’s lowest tax bracket is higher than the highest tax bracket in 24 other states. Over 2.4 million filers would benefit from the historic Republican tax rate cut, with an average savings of $759. A typical family making $100,000 would see a savings of $1,064.
Minnesota is one of just 13 states that tax Social Security benefits. Impacting taxpayers with just $25,000 in income, the Social Security Income tax hits more than 407,000 Minnesota filers. None of the states that border us — Iowa, Wisconsin, Michigan, and South Dakota — tax Social Security income. Eliminating the Social Security tax would put $1.6 billion back into the hands of beneficiaries, with an average benefit of $1,254.
Republicans passed billions in tax cuts in the last five years, stopped Gov. Walz’s massive tax increases, and passed the first income rate tax cuts in 20 years. Today’s bill passage signals an effort to continue meaningful and permanent tax relief.