SE Minnesota News

Sen. Carla Nelson said Minnesota is one of the highest taxed states in the country and wants the state’s $1.5 billion budget surplus to be used for tax relief. 

She wants that tax relief for all taxpayers in the state. Nelson said eliminating the tax on Social Security income, expanding tax credits for families with school age children, and scaling back the lowest income tax rate would accomplish that. Farmers and mom-and-pop business owners would benefit as well. 

The surplus is the result of a general fund revenue increase and reduction in spending estimates, according to the Budget and Economic Forecast for February 2020. The forecast  indicated that the $1.5 billion projected surplus for fiscal year 2020-21 biennium is nearly $200 million greater than was estimated in November. 

“The surplus is fantastic news and more proof that our responsible budgeting principles have worked,” Nelson said. 

She said it’s “simply absurd” that the state still taxes Social Security income, and that’s why most states have gotten rid of that tax. Nelson said she has in the past supported a bill to eliminate a tax on Social Security income and will continue to back that effort. 

Programs that boost early-learning scholarships and other ways of increasing student achievement will also get her support. 

“Only 55 percent of students are reading proficiently by third grade right now, and we have to do better,” she said.