This week, Governor Tim Walz released his budget proposal for the 2020-2021 biennium on Tuesday, highlighted by more than $3 billion in tax increases over the next two years alone, and $4.7 billion in tax increases for 2022-2023. It also includes increases to tab fees, the motor vehicle sales tax, the Metro Area sales tax, business taxes, and reinstatement of the sick tax, which is set to expire at the end of the year, adding $1 billion to the cost of health care for Minnesotans over the next two years.
But perhaps most egregious is Governor Walz’s proposal for a 70 percent gas tax increase should be an absolute non-starter with a $1.5 billion budget surplus. This proposal would give Minnesota the 4th highest gas tax in the country and hurt every man, woman, and child who drives or shops at a store. Rising gas prices will be passed on to customers, hurting those who can least afford to pay the most. This is bad policy and have a long term negative effect on our state’s economy.
In 2020-2021, the Governor's budget raises general fund tax revenue by $1.224 billion. The extension of the sick tax adds an additional $947 million, with transportation-related taxes adding $907 million for a total tax increase of $3.078 billion. In 2022-2023, the tax increases balloon dramatically; the governor increases general fund tax revenue by $1.43 billion, with another $1.52 billion for the sick tax and $1.73 billion in transportation taxes.
Governor Walz's plan also fails to extend reinsurance in the individual health care market, which could cause premium rates to skyrocket once again by 50% or more. The Governor's proposal would do nothing to prevent rates from skyrocketing, and would very likely mean that the state would pay twice as much to cover half as many people, while Minnesotans ultimately pay higher premiums on the individual market.
Photos this Week
Rep. Nash and the Cat in the Hat
Rep. Nash with a group of constituents during 'Catholics at the Capitol' this week
Rep. Nash meeting with mayors and city council members from Hamburg, Carver, and Norwood Young America.
Please Contact Me
We’re back in session, and we’ll be discussing countless ways to improve our state. I hope you’ll call, email, or visit to share your thoughts, ideas, or questions. As you know, I’m here to serve you and want to help in any way I can. My office is located on the third floor of the State Office Building, Office 349. If you are coming by the Capitol, please stop by my office!
Have a great weekend,