Governor of Minnesota Tim Walz (D) has proposed that the state use its budget surplus to provide tax relief to millions of families.
Walz has proposed a tax credit that would provide relief of up to $2,600 to households across the state.
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According to a new report on Walz’s proposal, which was issued on Tuesday, January 24, this is the largest tax cut package in state history.
The tax cuts are part of a two-year budget package totaling $65 million. Walz said, “This is a fair budget that will continue to create growth, lower taxes for Minnesotans and improve every aspect of their lives.”
If the state legislature approves the budget, the tax credits will equal $2,000 for families earning less than $150,000 and $1,000 for single taxpayers earning less than $75,000 a year. They will be exempt from federal taxes under the current proposal.
Additionally, families can receive $200 per dependent, up to three people.
Walz’s budget plan also includes expanded tax credits for parents and child care expenses. He said a middle-class family of four could receive up to $10,000 in tax credits.
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However, the budget faces opposition from Minnesota Republicans. Republican leaders have expressed concern about the $11 million increase from the state’s current $54 million budget.
“Currently we have a surplus of $17.6 billion. This budget spends all of that. Not only that, but it grows government by 25%,” Senate Minority Leader Mark Johnson of East East told reporters recently. Grand Forks.
The surplus is the result of tax revenues that exceeded expectations and lower spending overall.
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Democrats attest that this allows for major one-time spending, like the Governor’s proposed tax cuts.
What do you think about Governor Walz’s tax credit plan?
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