The Senate Democrats of Minnesota introduced their proposal of tax rebates, tax cuts, and tax credits. However, there are differences between the House and the Governor’s plans to provide tax relief for the residents.On April 26, the Senate Democrats of Minnesota introduced their 2023 tax breaks proposal which includes tax rebate checks, Social Security tax cuts, and Child Tax Credit (CTC). However, there are significant differences between the tax relief plans of the Democratic–Farmer–Labor Party (DFLers) in the House and of the state’s Governor Tim Walz’s. Nonetheless, an article in the MPR News states that the legislature led by the DFLers will resolve their differences in the final weeks of the session.
2023 Tax Breaks: Rebate Checks
According to Cummings, the Senate’s bill that has $4 billion worth of rebate checks for four years will provide $558 for joint filers who earn up to $150,000 per year. On the other hand, individual filers who earn up to $75,000 will be provided with $279. An additional $56 can also be received for every eligible child. However, only up to three dependents are qualified.
2023 Tax Breaks: Social Security
Senate Republicans and some Senate Democrats urged the Social Security benefits to be fully exempted from the state’s income taxes. Both the House and the Senate intends to authorize a full exemption for married taxpayers who earn less than $100,000 and individual taxpayers who earn less than $78,000.
2023 Tax Breaks: Child Tax Credit
Households that earn up to $80,000 are eligible to receive the CTC. The tax credits will provide $620 per child who are under 18 or with disabilities that are under the proposal. However, only up to three dependents are qualified.