FOR IMMEDIATE RELEASE: March 19, 2014 MEDIA CONTACT: Katie Fulkerson, 651-296-5133

Senate Republicans Put Families First, Propose Permanent Sales Tax Cut
All Minnesotans would benefit with every trip to Target (St. Paul, MN) - Republicans in the Minnesota Senate today announced a comprehensive plan to account for the projected $1.2 billion surplus by “putting families first.” The centerpiece of the plan is a permanent halfpercent cut to the state sales tax, reducing it from 6.875 to 6.375. The sales tax reduction builds on Republican efforts to fully repeal the unnecessary consumer tax increases passed in 2013 and fully conform the state income tax system with the federal government. “Every time a family shops at Target, they will benefit from this sales tax reduction,” said Senate Republican Leader David Hann (R-Eden Prairie). “We support keeping that money in the Minnesota economy, in the pockets of hard working taxpayers across the state.” Republicans also announced support for a $200 million one-time infusion into transportation spending, specifically on roads and bridges. The spending will be offset by requiring the Minnesota Department of Transportation to deliver on its promise of a 15% reduction in costs due to spending efficiencies. The efficiencies were promised in 2008 when the gas tax was raised, and so far the Dayton Administration has refused to deliver any savings.

“Everyone agrees we need to spend more on our roads and bridges, especially in Greater Minnesota,” said Sen. Gary Dahms (R-Redwood Falls). “Putting families first means lowering commute times and getting people home from work faster and safer.” When the surplus was first announced on February 28, 2014, Republicans announced support for repealing the business to business taxes, providing full federal conformity on the income tax, repealing the gift tax and fully funding the 5% Campaign. They also asked Minnesotans to weigh in on how they would like the rest of the surplus handled. “We asked for input from the public and two things came through loud and clear,” added Sen. Julianne Ortman (R-Chanhassen). “First, Minnesotans don’t want another round of “Jesse Checks” or any other one-time gimmick, they want permanent tax relief. Second, Minnesotans want the potholes fixed and our roads and bridges repaired. This Families First package makes that a priority.” The Senate Republican Families First Plan • • Permanent half-percent sales tax reduction ($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-tobusiness 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)

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“Gov. Dayton and the Democrats have already increased spending more than 10% and their current proposals call for even more wasteful government spending,” added Sen. Hann. “Republicans trust Minnesotans will make better decisions with their money than anyone in St. Paul.” ###