A proposed bill in the Minnesota House of Representatives could provide state taxpayers with some extra money in the near future.
The bill, proposed by state House Democrats on Monday, included a tax plan that would return $1.25 billion of the state's $17.5 billion budget surplus to taxpayers. These check payments would start off with a value of $275, with joint filers getting $550 checks as well as an additional $275 for every dependent a taxpayer has, capping off at $1,375 for joint filers with three dependents, according to Duluth News Tribune.
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“The pandemic laid bare the harsh realities of this economy for working-class and middle-class Minnesotans,” said Democratic state Rep. Aisha Gomez. “While corporations posted record profits and the rich became even richer, so many in our communities couldn't stay home.”
A total of about 2.5 million state taxpayers would be eligible for these payments should the legislation pass. To be eligible, a single filer's annual income cannot exceed $75,000, while a joint filer's annual income cannot go over $150,000.
Beyond the payment, the proposed legislation also pitched creating a new “millionaires tax” on the top 0.8% of earners in the state and tax cuts for Social Security. House Democrats have described the tax plan as the “largest tax cut in state history.”
However, the legislation proposed by House Democrats has been met with opposition from state Republicans. As part of their opposition, Republican senators drew attention to almost $10 billion in new taxes in bills supported by Democrats moving through committees.
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“The Democrats’ budget will lead to higher taxes now and even higher taxes into the future to support their aggressive government growth,” state Senate Minority Leader Mark Johnson said. “Democrats in St. Paul are failing their campaign promises of lowering taxes for Minnesotans.”
While state Republicans are the minority in both the Senate and House in Minnesota, some Democratic senators do have common ground with Republicans who seek a repeal of the state's income tax on Social Security.