Dear Friends,
Spring is finally here and things are winding down here at the legislature. Over the past few weeks, all of the budget bills have been passed out of the Senate and the House marking the beginning of the conference committee process.
Starting last week, select members of the House and Senate will meet to negotiate and resolve differences between the two versions of the budget bills in each budget area. It's an intensive process, and given the stark differences in many of the budget areas, a lot of time and effort will be required to come up with an agreement that leadership in the House and Senate can agree on.
Perhaps the biggest area of concern is the tax bill, and what it will look like when it comes out of conference committee. The Senate and the House have differing approaches and disagreements on the overall tax increase, as well as what taxes will go up.
In the House, revenue is collected from a tax increase on the wealthiest 2% of Minnesotans, and an even higher surcharge on income earners making more than $500,000 per year. Adjustments in the tax brackets bring in another several hundred million dollars, impacting taxpayers making as little as $21,651 per year who could be vaulted into a higher tax bracket and forced to pay more.
The House plan also features significant increases on taxes on sports memorabilia, alcohol and cigarettes, including a 600% increase in the excise tax on beer.
The Senate's plan on the other hand increases income taxes on Minnesotans making as little as $80,000 per year, and features a similar expanded sales tax that we saw the Governor abandon in the face of public opposition and outcry earlier this session. It would impact goods and services such as clothing, baby Tylenol, and auto repairs, to name a few.
Simply put, one thing is apparent from the bills in the House and the Senate: hardworking Minnesotans will be paying more in taxes. I just don't think it's the right approach to be raising taxes on Minnesota families to pay for more bureaucracy and wasteful spending.
Government is set to grow by nearly 10%, while the economy and family incomes grow at a rate far below that. It's simply not sustainable, and frankly irresponsible.
I will be sure to keep you informed on the status of the tax bill when it comes back to the House for concurrence and final passage. If you have thoughts, suggestions, or questions about this or any of the remaining budget bills, I welcome your input and urge you to contact my office at 651-296-5513 or at rep.mark.uglem@house.mn.
Thank you for the continued privilege of serving and representing you here at the Minnesota legislature.
Have a great week,
Mark Uglem
State Representative, District 36A