Jasinski: How much is enough? Democrats approved big tax hikes despite $19 billion surplus

Friends and neighbors –

One of the main responsibilities of the legislature is to develop the state’s budget. That is a project that happens in odd-numbered years. This year, we had a $19 billion dollar surplus to work with. It’s really a mind-blowing number – the largest surplus in state history. If it helps put it in perspective, about a decade ago our entire state general fund budget was only $32 billion.

Ideally, the state’s revenue forecast should roughly match its spending needs. A surplus means that the state took more from taxpayers than it needs. In this case, it took a heck of a lot more. The overarching debate this session is what should be done with that surplus.

The Republican perspective is simple: this is your money, and you deserve it back. Nearly every day, I talk to people who are feeling the pressure of high grocery, gas, and energy prices. Things have improved somewhat as inflation has cooled but people are still struggling. Republicans believe we had a duty to return the surplus to taxpayers. 

That’s not the approach Democrats took this year, unfortunately.

Instead of prioritizing returning the surplus to taxpayers, the Democrat ‘trifecta’ – Gov. Tim Walz, House Democrats, and Senate Democrats – chose to spend the entire surplus. They crafted a budget that is a staggering 40% (yes, you read that right) larger than the previous budget.

Not only that, but they actually passed more than $9 billion in tax increases that will hit every single Minnesotan – gas taxes, sales taxes, tab fees, payroll taxes, retail delivery taxes, and much more. There are even going to be tax and fee increases coming your way that can’t be calculated yet. For example, your energy bills will almost certainly need to increase due to the Democrat budget.

Government is going to be exceptionally expensive, and you’re going to foot the bill. Remember this and ask yourself in a year or two or three if you are really getting 40% better government.

Contrast that with our plan. Early in session, Senate Republicans unveiled a detailed plan to give the surplus back to the people who created it. We called it the Give it Back plan. Here is what it entailed:

  • A complete elimination of the tax on Social Security benefits
  • One-time rebates checks and a one-time child tax credit available for two years. The checks were estimated to be $1250 for single filers and $2500 for joint filers.
  • Permanent tax relief of $3 billion by lowering both the first and second-tier income tax rates by 1 percent each.
  • Property tax relief. We proposed increasing the homestead market value exclusion and allowing more property owners to qualify for tax relief on their homes.

Contact me:

If you have any questions about any issues we are working on at the legislature, feel free to contact me any time at sen.john.jasinski@senate.mn or 651-296-0284.

And you can always get the latest news from St. Paul on my Facebook page at fb.com/SenatorJohnJasinski.

 It is a privilege to serve you!

John