The Senate Majority just voted to support a series of tax cuts in the neighborhood of $100 million, in a combination of income tax and sales tax adjustments. The caucus expressed general support for the idea of a refundable credit for sales tax on food.
The decision followed a lengthy discussion on the state budget - the money we’ve committed, the amount we have left over, and the obvious budget demands such as education, transportation, and economic development.
Given compelling state needs, the caucus felt that a tax cut in the neighborhood of $100 million struck an appropriate balance. If the mid-February tax estimates indicate higher revenues, we would probably consider a larger tax cut.