"We think that just makes it fair," Walz said, adding that the revenue would be devoted to workers. It's estimated the move would generate $661 million over the next two years. Minnesotans who make $500,000 or more when they sell stocks, a home or other assets would pay a 1.5% surcharge and those getting more than $1 million would pay 4%. While seniors and families would see tax breaks, Minnesotans who see substantial capital gains would pay more under Walz's plan. He estimated all the tax cuts in his plan total $8 billion. Those credits would provide thousands of dollars to help with child care costs. Under Walz's plan, about 350,000 households would see a cut in their Social Security taxes.īesides the one-time payments and Social Security tax reductions, Walz previously unveiled plans for tax credits for families with children. Some Democrats worry about the resulting $1.3 billion loss of state income over the next two years, a figure that would increase in the following two-year budget. Republicans have long pressed for eliminating the state's tax on the benefits, which the Department of Revenue estimates would affect 473,000 Minnesota filers. Lawmakers have also offered differing visions for Social Security tax cuts. The checks, he said, would not be taxable. "People can make good decisions for themselves, and a portion of this surplus needs to get back in their hands," Walz said. It's a slimmed-down version of his past proposal, where Minnesotans with a wider range of incomes would have qualified for the cash. Families could also receive $200 for each dependent, up to three children. On Tuesday, Walz suggested that single tax filers whose adjusted gross income is less than $75,000 should receive $1,000 through an advanced income tax credit and that couples earning less than $150,000 should get $2,000. Walz has been calling for the payments for a year, but DFL legislators have not embraced the idea. One looming clash is whether Minnesota should send checks to residents. Senate Majority Leader Kari Dziedzic, DFL-Minneapolis, said in a statement that she's ready to work with Walz and Hortman on "lowering costs for families and ensuring strong schools, safe communities and a healthy climate." "I look forward to our continued partnership as we craft our budget." House Democrats and Walz share many goals, said House Speaker Melissa Hortman, DFL-Brooklyn Park, said in a statement. With Democrats in full control of state government, this year's budget battles are likely to feature nuanced disagreements rather than fundamental differences. The governor's budget is the starting point for negotiations with legislators. "Whether it's reducing the cost of child care, or whether it's putting checks and money back in people's pockets." "As the economy brings pressures onto families, we have the capacity to relieve some of those," Walz said. His plan amounts to a 26% increase from the current two-year budget, with more than half of the increase in one-time spending. Walz on Tuesday proposed his full vision of state spending and taxes for the next two years, drawing on an estimated record-breaking surplus of $17.5 billion to boost cash for schools, housing and paid worker leave, and to give tax breaks. More than 2.5 million Minnesota households would receive checks from the state and many seniors would pay lower taxes on their Social Security benefits under DFL Gov.
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