MN Legislature’s proposed deal eliminates taxes on Social Security

mn-legislatures-proposed-deal-eliminates-taxes-on-social-security Published 1 month ago Views (15) Entertainment Finance

The Minnesota Legislature appears ready to eliminate all taxes on Social Security benefits while boosting credits for renters and slightly lowering the first tax tier rate.

Those are all included in a tentative proposal posted online by the bipartisan conference committee of House and Senate members working to finalize how to divide $4 billion in tax breaks. The deal would stretch over the next three years and tap the state’s budget surplus to pay for the loss in revenue.

Under the tentative plan, the first tier tax rate would fall to 5.1 percent from 5.35 percent. It would impact the first $28,080 in earnings for single filers and $41,050 for couples.

Lowering the rate would reduce revenues by an estimated $272 million next year and about $200 million annually.

The plan also eliminates state income taxes on Social Security. Doing so reduces revenue by about $510 million next year and roughly $550 a year going forward.

Renters would also benefit from increased tax credits worth about $373 million annually.

The tax conference committee met briefly Saturday morning to discuss policy provisions and is expected to reconvene this afternoon to talk about tax breaks.

Lawmakers have until midnight Sunday to...

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Angie Fox writes sweet, fun, action-packed mysteries. Her characters are clever and fearless, but in real life, Angie is afraid of basements, bees, and going up stairs when it is dark behind her. Let’s face it. Angie wouldn’t last five minutes in one of her books.

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