Minnesota Senate passes permanent tax cuts, to refund $9 billion surplus

Prices for gas and groceries in Minnesota are too high, according to Republican lawmakers.

So are state taxes, which is why the GOP is backing an omnibus bill containing permanent tax cuts.

The GOP-run Senate passed a bill Thursday to do something about the state’s $9 billion surplus. It’s about twice the size of Wisconsin’s budget surplus.

But, Minnesota’s part-time state Legislature is still working on ways to distribute that money back to taxpayers, while Wisconsin’s full-time state Legislature did nothing with its surplus. The Legislature in Wisconsin adjourned for the year three weeks ago, so it could hit the campaign trail.

Senate Majority Leader Jeremy Miller, a Republican from Winona, says the state’s budget surplus isn’t a one-time thing.

“If you look into the future, there’s a structural budget surplus, meaning the state’s not just over collecting money from the taxpayers now but that goes into the future,” Miller said. “The best way to address that over taxation is by providing permanent tax relief.”

One measure in the bill would eliminate the state income tax on Social Security benefits.

Six Democrats joined the Republican majority in the Senate to make the tax cuts permanent. Miller of Winona says the bill is aimed at bringing the most benefit to middle-income taxpayers.