State Senate still split on tax relief package

Published: Apr. 25, 2022 at 6:20 PM CDT
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ST. PAUL, Minn. (KTTC) – In his Fourth State of the State Address, Minnesota Governor Tim Walz (DFL) again asked for the parties to strike a deal on dishing out the state’s budget surplus.

“We’re not going to be in total alignment, but I do know that those core values are there, and I do know that there’s good ideas coming out,” said Walz.

But even at this stage in the game with four weeks remaining in the legislative session, DFL and Republican Senators remain split on on the topic of putting money back into the hands of Minnesotans.

The Senate DFL backs Walz’s form of a one-time payment to taxpayers statewide, which would give $500 to individual taxpayers and $1000 to couples:

“A one-time check that they could have in their hands within the next several months,” said Senator Ann Rest (DFL-New Hope).

Republicans are still backing a more permanent resolution in ongoing tax cuts.

“This is the time to focus on the surplus, get it back into the hands of Minnesota taxpayers who are overcharged, they know best how to spend it,” said Senator Carla Nelson (R-Rochester).

Nelson is a leading member of the Senate Tax Committee, went as far as to call the Governor’s plan a bad idea, and noted the proposal did not make the House’s draft of the tax relief bill.

“Of course it’s not in the senate plan, because it’s a bad idea. It’s one time money that Minnesotans will suddenly be taxed on by the federal government,” said Nelson.

The DFL opposition to this tax relief proposal is concern over the state government losing too much money over these ongoing tax cuts, and say money in the pockets of Minnesotans now would provide more instant relief.

“It’s fiscally responsible, it is not overpromising 2.8 billion dollars every year which, quite frankly, by the beginning of next year, we just might not have,” said Rest.

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