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Legislative Update from Rep. Glenn Gruenhagen

Monday, February 1, 2021

Dear Neighbors,

Last week, Governor Walz released details of his 2021-2022 budget proposal. The release of the Governor’s budget is the first official step in debating and approving a new two-year budget.

The Governor’s plan is headlined by nearly $1.7 billion in new taxes, major spending hikes, and almost no meaningful spending cuts.

In fact, the Governor proposes reductions in spending of only $150 million. That’s a measly 0.3% reduction out of a $52.4 billion budget. This is especially disappointing at a time when businesses and families have seen their profits and incomes fall of a cliff due to Governor Walz’s shutdowns.

Here are some more details on the tax hikes in the plan:

  • 15% increase to Minnesota's business tax rate which would vault Minnesota to #2 in the entire nation.
  • 10% increase to the top tax bracket, creating a fifth tier, giving Minnesota the third-highest income tax rate in the nation.
  • A whole host of other regressive tax increases on cigarettes and vaping products, which impact low-income Minnesotans the most.

In fact, out of the Governor's $1.7 billion in tax increases, $941 million are regressive taxes that will impact Minnesotans of every income level. Estimates show that corporate, sales, and tobacco tax increases disproportionately impact low-income Minnesotans harder than wealthy taxpayers.

Read this article for more information about how these tax increases impact all of us: https://bit.ly/3aljA41

This budget follows the same old Democrat playbook of ‘tax and spend’ and is the wrong approach for Minnesotans at a time when so many are still struggling because of Governor Walz’s shutdowns.

Instead of taking more money from Minnesotans and businesses and growing the size of government, we should focus on reduced spending and ask state government to share in the sacrifice that so many Minnesotans have had to endure this year.

Stay tuned for more information on this as session unfolds.

Thankfully, many of the radical proposals in the Governor’s plan have little chance of becoming law thanks to the Republican majority in the Senate. Nevertheless, I will continue fighting to make sure government tightens its belt and does not force hardworking Minnesotans to part with their income at a time when so many are struggling.

Staying in Touch

Please do not hesitate to reach out to me to share your thoughts, questions, and concerns as it relates to state government. I can be reached at 651-296-4229 or via email at rep.glenn.gruenhagen@house.mn.

Have a great day,

Glenn

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