Minnesota Republican Lawmakers Unveil Tax Relief Plan

ST. PAUL, Minn. (WCCO) -- Republicans at the State Capitol Wednesday unveiled a far-reaching tax cut plan they say is aimed at middle class Minnesotans.

Republicans have made it clear this is a major push for them this year, and it's a big tax cut.

Gov. Mark Dayton is raising concerns about whether the state can afford it. Republican leaders say its an effort to reach out to middle class Minnesotans passed over for tax relief in the past.

The bill includes income tax cuts for seniors on Social Security. It expands the childcare and dependent care credit, and there's a first-in-the-nation tuition tax credit for college students.

The price tag is steep: $1.35 billion dollars, much of it funded from the latest state budget surplus.

"The folks that haven't seen the benefits of these surpluses are Minnesotans -- the same Minnesotans who are responsible for those surpluses," Republican House Speaker Kurt Daudt said. "So we're going to invest back into Minnesota families, and we know that's going to pay dividends in the future. That's going to mean a growing and thriving economy in this state which will mean more revenue for this state."

Gov. Dayton is concerned about the size of the tax cut package, especially with uncertainty in Washington. The Trump administration is proposing budget cuts and a repeal of Obamacare that could cost Minnesota billions of dollars in the next couple of years.