ST. PAUL – Senate Democrats today passed a tax agreement that raises taxes on Minnesotans by more than $2 billion, despite a historic $19 billion surplus. This legislation fails to deliver meaningful tax relief and does not provide for the full repeal of the Social Security income tax. On top of that, Democrats are forcing through changes to charitable gaming that will harm the efforts of charities across the state to raise money through e-pull tabs.
A few months ago, the budget forecast was released showing the state has a $17.5 billion surplus. This was after accounting for $1.5 billion of inflation due to a legislative policy change passed in February. Minnesota serves as one of the most heavily taxed states in the nation, and the record surplus is a direct result of this over-taxation.
“Democrats are shortchanging Minnesota taxpayers out of a $19 billion surplus by failing to pass meaningful tax relief,” said Senator Bill Weber (R- Luverne), the lead Republican of the Senate Taxes Committee. “Instead, the tax bill raises taxes by more than $2.2 billion dollars over 4 years, harming our economic competitiveness and growing government at the expense of Minnesotans. Democrats will be talking about historic tax cuts this year. However, the reality is that the majority of Minnesotans who helped create our state’s historic surplus will not receive any financial relief. Minnesota families continue to suffer from sticker shock at the price of eggs and energy costs. This legislation does not do near enough to provide the much-needed financial relief that they deserve.”
With the passage of this legislation, Democrats are completely abandoning charities across Minnesota and tearing down e-pull tabs. This will leave countless American Legions, children’s sports, Lions Clubs, and VFWs struggling to raise the revenue they rely on to support community initiatives across the state.
“The Democrats’ massive modifications to Minnesota’s e-pull tab program will eliminate more than half of the revenue of charities across Minnesota. I am strongly opposed to this change which I know will severely harm our local charitable organizations,” Senator Weber added.
All throughout the 2023 legislative session, Senate Republicans have fought to give the surplus back to hard-working Minnesotans. Republicans proposed the “Give it Back” tax plan with $13 billion over two years in permanent tax cuts, such as the full elimination of the Social Security income tax, and one-time rebates. It prioritizes getting taxpayers relief from inflation and the rising costs they are facing in Minnesotans’ everyday lives.
“Democrats who campaigned on the full exemption of the tax on social security income are breaking the promises they made to Minnesotans. The tax bill only partially eliminates this burdensome tax and turns a blind eye to a number our seniors. Every Republican senator would have put up votes for a clean repeal of this burdensome tax. It would have only taken a single Democrat to demand this change. With a $19 billion surplus, it is unacceptable that we did not get this accomplished this session. But unfortunately, the Democrats don’t seem to care!” Senator Weber concluded.
