The weather is warmer as summer gets closer and closer! I hope you were able to spend time with friends, family, and loved ones during Easter.
The legislature returned from its Easter/Passover break this week and we are settling into what’s sure to be a very busy final six weeks of session.
This week, House Democrats started rolling out their omnibus finance bills. These bills represent the priorities of the DFL majority.
On Monday, they unveiled their omnibus tax bill. The proposal raises taxes by more than $1 billion, and fails to fully protect businesses from Paycheck Protection Program (PPP) tax hikes on forgiven loans.
The bulk of the revenue comes from a brand-new 5th tier income tax of 11.15% that would give Minnesota the 2nd highest top income tax rate in the country and directly impact many businesses who have been hit hard during the pandemic. It raises business taxes through changes to foreign income, and also caps PPP relief at $350,000, meaning many businesses will still be taxed on forgiven PPP loans that were used to pay employees and keep their doors open during a difficult year.
This is completely tone-deaf, especially at a time when Minnesota has a $1.6 billion budget surplus, billions in our budget reserves, and billions more coming to the state from the federal government thanks to the most recent congressional COVID relief bill.
Simply put, Minnesota government has never been more flush with cash.
The insanity doesn’t stop with the tax bill as Democrats are also seeking to raise more than $1.5 billion in taxes and fees in their transportation omnibus bill.
Here is a quick rundown:
These sorts of tax increases at a time when the state has significant dollars in its coffers is simply unconscionable.
Stay tuned for more updates on this as we approach the May 17th adjournment deadline. I will do everything I can to make sure that these onerous tax increases do not become law.
Please do not hesitate to reach out to me to share any thoughts or concerns you may have about state government or the job I'm doing as your representative. It would be great to talk with you. I can be reached by phone at 651-296-8237 or via email at email@example.com.
Have a great weekend,