Politics & Finances

Minnesota Gov. Proposes Tax Credit For Millions of Families

Minnesota Gov. Proposes Tax Credit For Millions of Families

Minnesota Governor Tim Walz (D) has proposed that the state use its budget surplus to deliver tax relief to millions of families.

Walz has proposed a tax credit that would deliver relief of up to $2,600 to households throughout the state. 

Credit: YinYang/Getty Images

According to a new report about Walz's proposal, which was issued 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, reducing taxes on Minnesotans while improving all aspects of their life."

If the state legislature approves the budget, the tax credits will equal $2,000 for families with incomes below $150,000, and $1,000 for single filers making under $75,000 annually. They will be exempt from federal taxes according to the current proposal. 

Additionally, families can receive a $200 per dependent, up to three individuals. 

Walz's budgetary plan also includes expanded tax credits for parents and for child care costs. He said a middle-class family of four could receive as much as $10,000 in tax credits. 

Credit: Adam Bettcher/Getty Images

The budget is facing opposition from Minnesota Republicans, however. GOP leaders have expressed concerns about the $11 million jump from the state's current $54 million budget.

"We've got a surplus of $17.6 billion currently. This budget spends all of that. Not only that, but it grows government by 25%," Senate Minority Leader Mark Johnson, of East Grand Forks, recently told the press. 

The surplus is the result of tax revenues that exceeded expectations and lower spending overall. 

Credit: Walter Bibikow/Getty Images

Democrats attest that this allows for major one-time expenditures, like the Governor's proposed tax cuts.

What do you think about Governor Walz's tax credit plan?

You Might Also Enjoy:

Feature Image Credit: Adam Bettcher/Getty Images

share this post
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Firm Avatar
Accurate Reliable Taxes Llc

5 reviews

Irvington Tax Professional Natalene Davis

Natalene Davis is a tax preparer based in Irvington, NJ. Natalene Davis can assist you with your tax return preparation and planning needs.
Additional Information
Service Lines
Tax Preparation
Tax Planning

Need help selecting a firm?

Tell us about your project and get introduced to the best accounting and tax firm for your needs.

See additional top-rated professionals near Irvington, New Jersey
ABD CPA
5.0
Kyle graduated from Kean University in 2015 with a Bachelors' Degree in Accounting. He is currently studying and preparing for the CPA exam. Kyle has been a strong team player focusing on managing the firm and streamlining the business under the direct supervision of his father for more than ten years. In addition to his skill in tax preparation and knowledge in current tax law, he enjoys interacting with clients and strives to continue to grow the firm.
Ward's Accounting Service, Inc.
5.0
Bernell Ward, EA is a tax preparer based in Bronx, NY. His firm, Ward's Accounting Service, provides tax preparation and accounting services for small businesses. They also specialize in tax resolution services. Get help with your income tax problems! Do you owe back taxes? Do you have Unfiled returns? Under Audit? Ward's Accounting Service can help! In addition to his Enrolled Agent designation, he is also a Notary Public and a NTPI Fellows.
Empire Tax Professionals
Empire Tax Professionals is an Enrolled Agent tax practice based in New York, New York. Empire Tax Professionals can assist you with your tax return preparation and planning needs.

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts