Senate Democrats on Monday forced through an extreme bill that mandates a one-size-fits-all paid leave program for businesses across the state. The proposal creates a new government entity, which will lead to increased bureaucracy, a radical growth of government, and tax increases for every Minnesotan. The tax hike is expected to be at least $2.8 billion for the first year of the program.
“We all agree that paid family leave is a good concept, and it’s a needed asset for families, but this Democrat proposal will grow government, increase taxes for everyone, and offer no flexibility for our small businesses,” said Senator Jeff Howe (R-Rockville). “Democrats brought forward an extreme proposal that will hurt small businesses, and mandate them right out of our state. If Democrats were serious about solving this problem in a way that helps Minnesotans without crippling our small businesses, they would have worked with Republicans to refine the insurance option we proposed last year. That way, businesses would be able to provide the benefits their employees are looking for, without increasing taxes at every turn. Today’s bill creates a new mandate that will cripple our businesses. One-size-fits-all does not fit Minnesota.”
Senate Republicans previously put forward an alternative plan that harnesses the private market to make paid leave easier for employers to offer. The plan would have provided small businesses with needed flexibility to implement the program, by giving tax credits to employers offering the paid family leave benefits. The plan received support from Democrats, Independents, and Republicans when it was introduced.
Earlier today, Senate Republicans held a press conference with small business owners and school officials, who raised concerns with the Democrat proposal.
The bill passed on a party line vote.