Legislators back in St. Paul for 2014 legislative session

Dear Neighbors,

Legislators returned to St. Paul this week for the start of the 2014 legislative session.

In this edition:

1) Budget Forecast

2) B2B Tax Repeal, Tax Conformity Discussed in Committee

3) Heating Assistance Extension for Seniors and Low-Income Families

4) Visitors

1) Budget Forecast

State analysts today reported that the economic forecast for 2014-15 shows a positive balance of $1.2 billion. The additional funds come after Gov. Dayton signed into law $2.4 billion in tax and fee increases last year.

While there is reason to be encouraged that we have positive rather than negative economic news, I think it’s good to question whether or not how we got here was the right way to do it.

Legislators shouldn’t be patting themselves on the back. Let’s make no mistake about where these surplus dollars came from, namely, straight from the pocketbooks of families in the northwest suburbs.

Raising taxes by $2.4 billion, collecting a huge $1.2 billion surplus, then suggesting a small tax cut is absurd. We should reform the way we tax and spend and, as much as possible, return future surpluses to those who made it possible – you the taxpayers. 

Stay tuned for much more discussion on the surplus and what to do with it.

2) B2B Tax Repeal, Tax Conformity Discussed in Committee

As a member of the Tax Committee, I voted this week to repeal three new business-to-business taxes (B2B) and conform state income tax codes to federal tax law.

I have mentioned in previous updates the importance of repealing the B2B taxes that were written into law by Gov. Dayton last year. I’m glad majority leaders in the House are recognizing the need to undo the significant financial hardship placed on businesses, farmers and entrepreneurs, to keep jobs in Minnesota, and to lessen the burden on consumers’ pocketbooks. Now it’s up to the Senate to take similar action.

Additionally, the committee prioritized state income tax conformity to federal tax law, a common process that was neglected last session. If you’ve started the tax filing process, you may have noticed that some standard deductions are no longer available, making it more complex and expensive to file.

For instance, folks who send their kids to child care, donate to food shelves, own a home with a mortgage, buy teaching supplies for their classrooms, adopt children, or pay certain student loan interest are unable to reduce their income tax liability because tax conformity was not made a priority last year.

Quick action will be needed in both the House and Senate to allow taxpayers to receive these benefits by April 15.

3) Heating Assistance Extension for Seniors and Low-Income Families

Legislators took immediate action on the first day of session to extend heating assistance to families and senior citizens who are struggling to pay their heating bills.

The state’s propane shortage and large price increases in the cost of propane, combined with a long, cold winter, led to skyrocketing heating bills that seniors and low income families are unable to afford.

Prior to legislative action, existing Low Income Home Energy Assistance Program (LIHEAP) funds were expected to run out by next week.

I agree with my colleagues that we need to do what we can to prevent similar problems in the future. Several preventative policy measures were discussed on the House floor, and I look forward to more discussion on other options going forward.

4) Visitors

Thanks to local constituents who visited me this week in St. Paul!

·       Brenda Frie and Steve Anderson, Occupational Therapy Day on the Hill

·       Ateseh Orandi, Physical Therapy Day on the Hill

If you’re ever at the State Capitol, please do not hesitate to contact my office to set up a meeting. I can be reached at rep.joyce.peppin@house.mn or 651-296-7806. I’m here to serve you!

Have a great weekend,

Joyce

**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A