Senate tax bill fails to prioritize meaningful tax relief for Minnesotans

During the 2023 legislative session, Democrats raised taxes by nearly $10 billion and blew through the entire $19 billion surplus. After emptying the pocketbooks of every Minnesotan, this year’s tax bill is primarily a collection of tax breaks for local projects instead of meaningful permanent tax relief for the average Minnesotan.

“Last session, Democrats grew state government by an unprecedented 40%, and they broke their promise to deliver permanent tax relief for Minnesotans,” Senator Bill Weber (R-Luverne), Republican lead of the Senate Taxes Committee, said. “That is why a top priority for Republicans this year is repairing the damage done to family budgets. Unfortunately, the Democrats’ tax bill takes no meaningful steps to make life more affordable for Minnesotans.”

The tax bill contains some positive Republican-sponsored legislation, such as tax credits for career and technical education, job development and sales tax exemptions for local projects. However, it contains several controversial items like prevailing wage requirements and burdensome employer requirements.  It is also troubling that this legislation drains the Taconite Assistance Area funds to support unvetted projects.

During the floor debate, Senate Republicans spoke to the critical need to provide Minnesota families with permanent and ongoing tax relief. “Our state had a historic $19 billion surplus to work with last session. This was more than enough to provide for the needs of Minnesota, but Democrats chose to spend the entire surplus to foot their extreme agenda. Minnesotans deserve financial relief, not more big government spending,” Sen. Weber added.

Republicans also sought to improve the bill by offering a key amendment to repeal the e-pull-tabs language from the 2023 tax bill. This change threatens to completely abandon charities across Minnesota and tear down e-pull tabs. When it goes into effect in 2025, it will leave countless American Legions, children’s sports, Lions Clubs, and VFWs struggling to raise the revenue they rely on. Democrats ruled this amendment not germane.