ST. PAUL – House Democrats continued their roadblock by stalling a Republican effort Monday to vote on bipartisan Senate legislation that would have prevented a tax increase from taking place despite a historic state surplus. State Rep. Eric Lucero, R-Saint Michael, said the issue centers on the state’s unemployment insurance trust fund that was depleted when Gov. Walz forced businesses closed and people out of work. The federal government provided funding to keep Minnesota’s unemployment program afloat and now that debt of more than $1 billion must be repaid. “The consequence of Gov. Tim Walz’s poor decision making to shut businesses down resulted in overloading the unemployment insurance program and draining the funds,” Lucero said. “Now, the very same job creators in our community hardest hit by Gov. Walz’s forced shutdown are having to endure even more pain and hardship by having the Democrat ‘shutdown-tax’ thrust upon them.” Gov. Walz, House Republicans, Senate Republicans, and most Senate Democrats support passing a clean bill to fully replenish the UI funds. The Senate one month ago approved by a veto-proof majority legislation to do so. Lucero said the Democrat House majority continue to downplay the impacts of their inaction on this issue, but said real-life reports indicate the tax increases could be significant. One recent article quotes Greater Minnesota employers saying they face tax increases in the tens of thousands of dollars next year. In one reported case, a 130% increase translates to a $21,000 spike. “With a nearly $10 billion government surplus, Democrats still want even more tax increases,” Lucero said. “At a time the prices of nearly everything continue to skyrocket, the tax increase will result in hardworking Minnesotans paying even more for everything than they already are. Democrats need to stop playing politics and do what is best for all of Minnesota.” -30- |