Lawmakers considering tax cuts early in Congress
A $100 million tax cut has already passed the House as lawmakers seek relief for restaurants, small businesses and student loan borrowers early in the legislative session.
st. Paul, Minnesota (FOX 9) – More than $100 million in tax incentives for restaurants, small business owners and student loan borrowers passed a unanimous swift vote in the Minnesota House of Representatives on Monday.
The bill has now gone to the Senate, with DFL leaders planning a vote on Wednesday. State Department of Revenue officials say lawmakers have until Friday to pass the bill, giving tax preparers and agency staff enough time to make changes in time for next tax filing season. said.
“That’s why we’re moving forward with the urgency of today,” said DFL-Minneapolis Rep. Aisha Gomez, chairman of the House Taxes Committee. Gov. Tim Waltz said he would sign the bill if lawmakers got him to.
The bill would wipe out Minnesota’s tax liability for student loan forgiveness if the U.S. Supreme Court allows President Joe Biden’s debt relief plan to go into effect. Oral arguments are scheduled for February.
Absent legislation, the borrower would owe state income tax on the forgiven loan amount. A particular borrower who stands to receive $20,000 in debt relief may owe more than $1,000 in state taxes.
The law also says restaurant and small business owners who received federal relief during the COVID-19 pandemic are not obligated to pay state taxes on their profits.
In the name of speed, Republicans and Democrats agreed not to seek amendments, including the more controversial proposal to allow Minnesotans kickback checks and exclude Social Security income from state taxes.
“There’s a lot to fight for later, but I hope this is a sign of what’s to come on the items we’ve agreed to,” state legislator Pat Garofalo, R-Farmington, said.