ST. PAUL—State Representative Jim Newberger, R-Becker, issued the following statement in response to Wednesday's passage of the Omnibus Tax Bill. HF677, chief-authored by Rep. Ann Lenczewski, DFL-Bloomington, represented the largest tax increase in three decades, raising $2.6 billion dollars in taxes. It raised taxes on income, alcohol, tobacco, sports memorabilia, and more.
"Today the Minnesota House passed the largest tax increase in the last thirty years. It's a tax increase that, despite promises to the contrary, hits Minnesotans at every income level, rich and poor alike. It represents a broken promise to the people of Minnesota.
"Democrats acknowledged on the House floor that the taxes on alcohol and cigarettes are inherently regressive. While their intentions may be good, the reality is that these taxes are a tax on addiction. Thousands of Minnesotans struggle every day with addictions to tobacco and alcohol. These tax increases hurt them hardest, and worse, hurt their families. It's more money out of their pockets. It's less money for diapers, groceries, and gas.
“This plan will also hurt Minnesota charities, and those that rely on them by eliminating tax deductions for Minnesotans who wish to make charitable contributions.
"We’re increasing spending at a rate that is simply unsustainable. The current budget is approaching $40 billion dollars, up from $35 billion last biennium, paid for by the hardworking taxpayers of our state. These tax increases represent the wrong direction for Minnesota and I fear will negatively impact our economy and the job climate of our state.”