As we wrap up the final days of this legislative session, Minnesotans can’t help but be disappointed by the work of lawmakers this year. This was my first term in the Minnesota House, and I can't thank you enough for the opportunity to serve you. Last fall, Democrats were elected to full control of state government after promising to work across the aisle, lower taxes for the middle-class, and grow jobs. Looking back, this year’s session has been the complete opposite. Our work at the Capitol was marked with partisanship, half the session spent on divisive social issues, and the largest tax increase on Minnesotans in a generation.
With no budget agreement amongst the Democrats and chaos about which taxes to raise and how much to raise them by, the public and lawmakers did not get to see a final Tax Omnibus Bill until just hours before the legally required end of session. In the final four days, the House considered a bill dealing with pay raises for legislators, a bill to borrow $850 million for pet projects (which failed), and a bill to force childcare providers into a dues collecting union. These bills wasted valuable hours that could have been spent on finishing the budget. Disappointing.
Moreover, the taxes imposed on Minnesotans this year will be damaging. On income taxes, a large chunk of earners will now be paying more in income taxes than 48 other states in America. The 9.85% state rate is a 25% increase from current rates for those in higher brackets (starting at $150,000 in income) and will likely squeeze our economic growth. Consumers across all income levels will pay more for products and services just months after Gov. Dayton agreed to not impose the controversial business-to-business tax. A brand new warehousing tax, meant as a "last ditch effort" to save the Viking’s stadium, will hurt farmers and the ag industry. The poor will be hit hardest, with a gigantic tobacco tax increase, some of which will be used to also bail out the flawed stadium funding plan which has failed.
Some have rightfully questioned why we need over $2 billion in tax and fee increases on Minnesotans when the budget is nearly balanced. Over the last two years, the Republican budget passed in 2011 has created surplus after surplus, bringing millions more into our state’s accounts than predicted. What was once a $5 billion deficit is now only several hundred million. We don’t need a huge money grab to fill a small hole that our economic growth continues to fill on its own.
On job creation, the Democrat plan creates more state bureaucracy and grows dependency on the very programs we have tried to streamline. It is the wrong approach. I’ve offered ideas and solutions for bringing our job policies more in line with the reality of this post-recession world. Fewer restrictions and more opportunities will grow private sector jobs and stabilize our state’s revenue. We can do better.
As we head into the interim, I hope you’ll share your thoughts on the session with me and ask any questions that may be on your mind. It has been a pleasure to serve you in my very first term at the Capitol. I plan on spending significant time speaking with constituents to determine a better course for Minnesota.
