Capitol Comments, By Peggy Bennett

Coming into this session, we knew one of our biggest tasks would be conforming to the new federal tax code. Late last year, Congress passed a tax relief proposal, which is great news for taxpayers, but those changes will greatly complicate tax filing for Minnesotans next year if we don’t make some changes on this end. Just this week, we took a giant step toward simplifying the tax code, providing the first income tax rate reduction since the year 2000, and helping improve rural health care.

On Monday, the House passed our tax plan on a wide bipartisan vote of 90-38. When looking at our bill, it’s easy to see why many members from both sides of the aisle voted for it. Our legislation helps middle-class Minnesotans keep more of what they earn. We cut the second tier income rate, the first such reduction in 18 years. We also lowered taxes on people of every income level by increasing the standard deduction for all filers. In total, 2.1 million Minnesotans will see a tax cut thanks to our plan.

Part of the tax bill contains my provision to incentivize health care facilities that locate in medically underserved areas in rural Minnesota. Access to health care in rural Minnesota is a huge issue. This bill is a tool in the toolbox for rural communities to help encourage more health care providers, such as birthing centers, hospitals and clinics, to locate in their area. We’ve seen a reduction of services in cities like Albert Lea, Blooming Prairie and others and we want to make sure our residents continue to have access to the care they need. The passage of this provision can help bring more health care options to areas like ours.

Protecting families is also an integral part of our proposal. By preserving personal and dependent state exemptions of around $4,000, we help Minnesota families save more each year on their taxes. This is important in allowing families to grow, expand and save for the future.

Hometown businesses and farmers also would see a benefit from our legislation. This is accomplished by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions. I think I speak for many in our area when I say I support bills that benefit local business and our hardworking farming community.

I would like to note that our plan differs greatly from Gov. Dayton’s supplemental budget proposal. The governor’s plan, unfortunately, raises taxes on Minnesotans of every income level and actually hurts those making less than $32,000 per year the most. When our state has a budget surplus, there is no way we should be making the tax code more regressive and raising taxes on people from every income level. Our bill shows that conformity is possible, while also benefiting middle class families.

Our goal for our tax conformity bill is to provide as much tax relief as possible, and prevent headaches for filers in 2019. We did that and more with our bill. The House plan cuts taxes for 2.1 million Minnesotans and helps ease the tax burden on the middle class. There’s still a long road to this becoming law, but I believe we’re headed in the right direction for Minnesotans.

Peggy Bennett, R-Albert Lea, is the District 27A representative.