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Anderrson
Dear Neighbor,
With a state budget surplus of around $18 billion, the least we can do this session is to eliminate the state tax on Social Security, providing some breathing room for seniors ? particularly those on fixed incomes. I have co-authored bills H.F. 557, 153 and 136 to make it happen.
Minnesota is one of just 12 states that still tax social security benefits. With a $17.6 billion state budget surplus, and price increases straining family budgets, the time is right for a full repeal.
It seems like everyone I talk with supports eliminating this tax that?s unnecessary and hurts our seniors. Minnesota?s tax structure is unfriendly to retirees. Reports [ [link removed]. ] indicate Minnesota loses more domestic residents to other states than it gains. Business and personal finance publisher Kiplinger lists [ [link removed] ] Minnesota among its ?not tax-friendly? states for retirees, indicating, ?The North Star State offers cold comfort on the tax front to retirees.?
A full Social Security tax repeal would benefit an estimated 473,000 people with an average tax savings of $1,276. In contrast, Gov. Tim Walz?s budget proposal doesn?t fully repeal the state Social Security tax, with only 43% of Minnesotans receiving some form of relief ? on average, $278 per household.
We can?t do anything about our cold winters, but Minnesota?s tax structure certainly is at least a factor in retirees deciding to relocate and that?s something we can change. Democrats signaled they were all-in for a repeal of the Social Security tax last fall. Now, more than a month in to the 2023 session, bills related to this subject have remained on the back burner in the House.
I hope we can work together to get this done and take care of our seniors this session.
In other news, a committee I serve this week conducted a hearing for a bill that would increase state aid for local governments and county programs. While I?m OK with those appropriations, automatic inflator provisions attached to the spending are concerning.
Also, a bill I have authored creating greater consistency in how solar installations are treated from a tax perspective received a favorable reaction when I presented it to a committee this week. My bill simply closes a loophole that has raised assessment concerns when multiple small solar installations placed on the same parcel of land are treated differently than one installation of a similar size on a different parcel of land. This bill remains in the mix for approval later this session.
Have a good weekend and, until next time, please stay in touch.
Sincerely,
Paul
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/RepPaulAnderson [ [link removed] ]
State Rep. Paul Anderson
277 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd
St. Paul, MN 55155
[email protected]
(651) 296-4317
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