Thursday Sen. Dave Brown of Becker joined with Republicans in the Minnesota Senate to announce a comprehensive plan for the projected $1.2 billion state surplus. The centerpiece of the “Families First” plan is a permanent half-percent cut to the state sales tax to make everyday purchases less expensive for Minnesotans.

 

“We need to stop taking money from the hardworking, taxpaying Minnesotans who are getting overwhelmed with taxes,” said Sen. Dave Brown.  “Every family and every person in Minnesota will benefit from this sales tax reduction.”

 

The proposal will also fix several mistakes from the 2013 session by repealing business to business tax increases that are harming job creation, fixing disparities between the federal and state tax laws that are costing Minnesotans money this tax season, and repealing the death tax that endangers family farms. 

 

Transportation funding will also receive a substantial boost to improve roads and bridges, addressing the “pothole pain” and long commutes that Minnesotans have been facing this winter. The sizable $200 million one-time expenditure will be offset by requiring the Minnesota Department of Transportation to deliver on its promise of a 15% reduction in costs. Spending efficiencies were promised in 2008 in exchange for the gas tax increase, but so far the Dayton Administration has refused to deliver any savings.

 

Sen. Brown stated, “It is time that we fix our massive potholes, reduce commute time and get people home from work faster and safer. And if the DOT follows through on its 6 year old promise to reduce costs by 15% then these goals can easily be achieved.”

 

The Republican plan is responsible and sustainable in future years, coming in well below the projected surplus in the next biennium.

 

The Senate Republican “Families First” Plan:

 

• Permanent half-percent sales tax reduction from 6.875 to 6.375  ($362 million for FY 2015) 

 

• $200 million transportation package that funds roads and bridges, not rail (offset by promised efficiencies in MNDOT spending) 

 

• Full, retroactive repeal of Democrats’ 2013 business-to-business taxes ($313 million)

 

• Elimination of the marriage penalty, adoption tax & full conformity to the federal income tax code ($333 million)

 

• Undo the Democrats’ 2013 gift tax ($41 million) and phase in estate tax reform ($12.5 million)

 

• Fund the 5% campaign ($80 million)

 

Sen. Brown stated, “Rather than giving Senators a new $90 million luxurious building and increasing wasteful government spending, I believe that we should use the Families First Plan to give back to Minnesota taxpayers, Minnesota businesses, and Minnesota families.”