Mathern Unveils $1 Billion Middle Class Tax Cut
Dem-NPL Gubernatorial Candidate Tim Mathern announced a $1 billion middle class tax cut package Monday that will benefit the hardworking North Dakota families who need it most.
"The surplus is the people's money," Mathern said. "It's not right for John Hoeven to hoard it while working families struggle to make ends meet."
Mathern's plan offers substantial relief on both income and property taxes. It provides $700 million in property tax relief and $300 million in income tax relief.
A family earning $50,000 per year that owns a statewide average value home will get a tax reduction of about $1,200.
"This is the kind of real tax relief that will help people at the gas pump and at the grocery counter," Mathern said.
North Dakotans earning under $78,850 will see their income taxes cut by 75 percent. Those earning more will get a 50 percent tax break on all income earned up to $164,550. Married couples will get the same cut in their brackets.
Fully 97 percent of North Dakota taxpayers will see relief under Mathern's plan. A household earning $50,000 would see an $800 break.
Homestead Tax Credit expansion:
The Mathern plan will extend the Homestead Tax Credit Program to every North Dakota homeowner. The program currently only covers elderly or disabled individuals with very low incomes.
Under the expanded Homestead Tax Credit, the state will pick up 25 percent of every homeowner's property tax bill. Farmers will get a similar rebate based on the value of residential property on their farm.
The average North Dakota homeowner will see a direct $400 cut.
Relief through adequate investment:
Our children are our most precious resource. That's why the Mathern plan will increase school funding by $300 million. The increase will bring us up to the long-time goal of having the state provide 70 percent school funding.
This result will be better schools and less reliance on property taxes to fund them.
The Mathern plan will invest an additional $150 million in our counties and cities, which currently heavily rely on their local property tax bases.
More state funding means lower property taxes and better services.