Capitol Comments by Peggy Bennett

It’s an important time of year as the House, Senate and governor are releasing their budget proposals for the next two years. While we all have different plans for the state, I believe the House Republican proposal can do the most good for our residents. At the top of our priority list is providing tax relief, and our proposal would do that with $1.35 billion in relief targeted toward middle-class Minnesotans.

I have heard from so many seniors who are asking for some relief on their Social Security taxes. I am happy to say that the single biggest part of the $1.35 billion in relief would come as a reduction in the state tax on Social Security income. The legislation would raise the income limit for Social Security to be taxed, a move that would benefit our aging population, especially those on a fixed income.

One of my favorite components of the tax bill gives property tax relief for our farmers who are struggling under the weight of property taxes that are 10 times the amount of the average homeowner and need to be competitive with neighboring farms in Iowa. The House GOP proposal would help farmers by easing how much they pay for the school bond portion of their taxes. I like this provision because it doesn’t hurt schools (it will actually help them), but creates a fairer system for farmers. With such an agriculture-rich area in southern Minnesota, this provision would be a big help to many of our friends and neighbors who help grow the food that comes to our tables.

The omnibus tax bill would also be a big victory for working families. As many parents know, child care can be extremely unaffordable, especially with multiple children. The legislation would combat these high costs through a dependent care credit. To put this in dollars for an average family, it could save a family of four $1,200 each year on child care. That’s real money for real families who need it.

Small businesses are the lifeblood of our economy, especially in Greater Minnesota. That’s why our bill exempts the first $200,000 of property value from the cumbersome statewide general levy. This tax hurts small businesses across the state, and isn’t necessary to keep our budget funded. Any of our main-street businesses in our area would benefit from this provision, keeping them on a more competitive playing field with their counterparts in Iowa, along with helping them grow and expand.

As the state’s budget surplus continues to grow, it’s a clear sign hardworking Minnesotans need a break on their taxes. It’s time to let people keep more of their hard-earned dollars to spend on their own family budgets as they see fit. Our current $1.35 billion proposal would help our aging population, local farmers, middle class families, college students, small businesses and more around the state.

Peggy Bennett, R-Albert Lea, is the District 27A representative.