Senate Democrats on Tuesday passed a controversial tax bill that raises taxes by $1.2 billion from foreign sources through controversial worldwide reporting, which has not been implemented in any other state. The bill fails to deliver meaningful tax relief, and fails to provide the full repeal on the social security income tax.

“Minnesotans have been loud and clear—their top priority is tax relief, yet Senate Democrats took the opportunity to instead raise taxes by over $1 billion in this bill,” said Senator Nathan Wesenberg (R-Little Falls). “Our state’s surplus was a clear indicator of the over-taxation folks across the state have been subjected to every year. Instead of recognizing and addressing the problem, Democrats doubled down and brought forward bills that amount to billions in new taxes and fees. Despite increased spending in virtually every area, it’s unbelievable that they couldn’t even find funding in their massive budget to completely eliminate the tax on social security. This bill fails our families, and it fails our seniors.”

The bill includes a controversial tax known as “worldwide” or “global” reporting. This means that any businesses with a presence in Minnesota will be forced to report all income, even that from outside Minnesota in a way that no other state in the country or the world requires.  This risky move will affect businesses based inside and outside of the state, and will likely force them to reconsider how much they are willing to invest to do business in Minnesota. 

Senate Republicans attempted to offer a number of amendments, which were either struck down or ruled out of order:

• Creation of a permanent and automatic refund program to ensure taxpayers are first in line to benefit from future government surpluses
• Requirement of a supermajority vote to raise income taxes
• Elimination of the child care tax credit 2030 expiration date