House Passes Tax Bill That Prioritizes Working Families, Closes Loopholes

St Paul, Minnesota — Today, the Minnesota House passed the Tax Budget Bill off the floor. This bill marks a significant milestone for the state's efforts to prioritize families and workers over the wealthy few. The bill includes a proposed child and working family tax credit, reducing child poverty by nearly a quarter.

"This bill is going to improve lives; it’s going to make our tax code more simple and more fair. It focuses on children and families who are in poverty and on seniors who are struggling economically. It helps takes us towards that goal that Governor Walz laid out for us of making Minnesota the best place in the country to raise a family,” said House Tax Chair Representative Aisha Gomez as she was introducing the bill on the floor this afternoon.

Key provisions of the House tax bill close loopholes and level the playing field, making Minnesota a national leader in ending unfair tax avoidance practices. This will raise significant revenue to fund Minnesotan’s priorities, like quality public schools, accessible health care, affordable housing, modern, safe, and sustainable water and transportation infrastructure, and reliable community services.

"Our Governor and numerous elected officials have been striving to make Minnesota the best state for children and families. Realizing this ambition requires resources and a dedicated workforce, as well as a tax bill that exemplifies these values. ," said Megan Dayton, President of Minnesota Association of Professional Employees. "The proposed tax bill will provide relief to working families, focus cuts on those most affected by inflation, and ensure that those who have profited while others struggled will contribute more towards their fair share.”

The bill targets seniors, cost-burdened renters, young families, and low-income workers for relief, while ensuring that Minnesota's tax system is more equitable and just.

“This tax bill will treat underlying causes that, as nurses, we cannot address,” said Mary Turner, President of MN Nurses Association. “Direct payments to low-income families through the Child Tax Credit and Renters Credit, as well as aid to counties for people who are homeless and many other provisions, will reduce the poverty and housing instability that are the root of our societies troubles.”

Minnesota's Fortune 500 companies have collectively made $55 billion over the past 12 months. The five richest Minnesotans are now worth nearly $8 billion collectively. At the same time, an increasing number of workers and families have struggled to make ends meet.

"This bill will not just increase the take-home pay of low-income Minnesotans, but it will do so in a way that our tax code is more fair for everyone. The Renters Credit will allow renters access to the same property tax refunds as homeowners, the requirements for worldwide combined reporting will end international tax avoidance and will require multinational corporations to pay the same taxes as small and locally owned businesses here in Minnesota," said Eric Harris Bernstein, Policy Director at We Make Minnesota.

"I am the mother and responsible party for my 52-year-old son, Scott. I have been his primary caregiver since he suffered a head injury at age 2," said Delores Flynn, a caregiver for her adult son who needs 24/7 care. "My family lived through Gov. Pawlenty busting a hole in our budget in the early 2000s. We saw the cuts to care for Minnesotans like Scott. It was scary, extremely frustrating, and devastating for Scott. Services that he needed he did not get. I believe that we as Minnesotans are better than that. Especially right now, as working people are cutting back on how many groceries they buy as inflation eats into wages, the rich and corporations are making out like bandits. It’s time they pay their fair share."

Speakers also emphasized that the House tax bill takes critical steps toward making Minnesota the best state for young families, as well as students, workers, and other young people who want to envision a future in Minnesota.

"I’m excited to see the Minnesota House tax bill prioritizing the students, young people, and families that rent across our state over the needs of the richest households and wealthiest corporations. The expanded Renters Credit will put more money in people’s pockets as landlords keep raising rents," said Jubilee Prosser, Leader with Young Adult Coalition of ISAIAH. "My generation struggles to afford our lives, let alone plan for a future and raise a family. The Renters Credit and Child Tax Credit would significantly reduce child poverty, and provide relief for cost-burdened renters, young families, seniors, and low-income workers."