Greetings,
We’ve had a busy start to session as lawmakers have hit the ground running. With Minnesota sitting on a $7.7 billion surplus, there is no shortage of legislative ideas as to how to allocate this revenue. To me, we need to provide tax relief to Minnesotans, and I have an idea as to how this should happen.
SOCIAL SECURITY TAX RELIEF
I recently introduced a bill that would assist every senior citizen in our state. The legislation would allow Social Security benefits to be utilized as an income tax subtraction during a taxable year. Very simply, there is no reason Minnesota should be taxing benefits earned by our senior citizens.
HELPING THE LABOR SHORTAGE
This week, the Minnesota House Commerce Committee heard my bill that would allow a 17-year-old waiter or waitress to serve alcoholic beverages at a bar or restaurant. The idea came from a local business owner who thought this might be a way to help businesses struggling with staffing issues and open more employment opportunities for people. Current law requires anyone serving alcohol to be aged 18 or older.
Under this bill, 17-year-olds would receive the same training and supervision as other staff members serving alcohol. To me, the legislation is a win-win situation: It provides an opportunity for business owners to employ high school juniors and seniors and develop a working relationship, and it gives 17-year-olds another work opportunity that could lead to significant tip revenue that they could use to help pay for college.
The bill is being considered for possible inclusion in an omnibus liquor bill that will be unveiled by the commerce committee later this year.
STOPPING LOCAL BUSINESS TAX INCREASE
Record-setting unemployment claims depleted Minnesota's Unemployment Insurance (UI) Trust Fund at the start of the pandemic. This resulted in a debt of more than $1 billion to the federal government, which serves as the backstop when states deplete their UI funds. To make up for that loss, payroll tax rates are set to increase on Minnesota’s business owners by 15% or more to replenish the fund.
With a nearly $8 billion budget surplus and more than $1 billion in federal COVID relief funding that has not been allocated, no one should be facing a tax increase of any kind this session. Minnesota has more than enough revenue available to eliminate this problem without further financial punishment of our local businesses. A stand-alone bill that utilizes available revenue sources must be approved by the legislature before March 15 in order to stop these tax increases from taking effect.
REINSURANCE PROGRAM NEEDS EXTENSION
As many of you know, I have worked hard over the years on Minnesota’s reinsurance program, which has been nationally recognized as a plan that’s proven to lower health insurance premiums for those who purchase plans on the individual market. Last session, the House majority would only agree to a one-year extension of this plan. As a result, health insurance premiums on the individual marketplace are going to rise. It’s very clear this program, which has been very successful, needs to be lengthened by more than a year. If not, Minnesotans - quite literally - are going to pay the price for this egregious oversight.
KEEP IN TOUCH
As always I'm continuing to support constituent needs. Feel free to contact me anytime at rep.tim.odriscoll@house.mn or by phone at 651-296-7808.
Be well,
Tim