Stimulus cheques are more than welcome by taxpayers. There is no need to say that high inflation and skyrocketing prices are causing strain on many families’ financial situations.
Despite the fact that stimulus cheques came to help during the pandemic crisis and are almost over in most states, there is one exception. It is still unknown if there are other states in the same situation though.
The state of Minnesota has recently announced that they have a big budget surplus. Since they have gathered more money than they expected, they need to find ways to spend it like stimulus cheques.
What did Governor Tim Walz say in January?
Governor Tim Walz promised the Minnesotans the largest tax cuts package in their history. Apart from that, about 2,500,000 households in Minnesota could receive a stimulus cheque.
This stimulus cheque could reach 2,600 dollars for those who are eligible. In total, this could become a $4 billion dollar plan according to the State of Minnesota.
Direct payments would come in the form of tax credits. Those families with income below $150,000 could get as much as 2,000 dollars. You could collect $1,000 if you are a single filer and earn less than $75,000.
What about tax reduction in the One Minnesota Budget?
Both, the Governor and Lieutenant Governor suggested spending $219 million to cut taxes on seniors’ benefits. In this way, they will reduce taxes on more than 350,000 Social Security beneficiaries.
Apart from stimulus cheques and tax cuts, there will be $1 billion spent over 4 years in order to improve the Child and Dependent Care Credit. In addition to this, there will be 1,1 billion dollars in tax cuts in the years 2024 and 2025.
The Governor also aims to reduce child poverty by 25 percent through the Child Tax Credit. Thus, there are many measures to support families and they are not just about stimulus cheques. For instance, investing in the Higher Education System and reducing carbon emissions.