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. 

“Minnesotans sent legislators to Saint Paul because they promised tax relief and the full elimination of the tax on social security, yet Democrats have decided to go against the promise they made to taxpayers,” said Senator Eric Pratt (R-Prior Lake). “Before accounting for inflation, we had a $19 billion surplus heading into the year. It was an unprecedented amount, and would have allowed flexibility in the budget for needed tax relief. Yet Democrats prioritized their own pet projects over the desires of Minnesotans. This bill increases taxes by more than $2.2 billion, and it will hurt entrepreneurship and families across the state. This year’s runaway spending fails our state, and sets Minnesota on a path of unsustainable spending.”  
 
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.

“Democrats also took the opportunity to make a number of changes to our state’s e-pull tab program, essentially eliminating more than half of the revenue that charities across the state receive from charitable gambling. This was a shameful move that will hurt charitable organizations across the state,” added Pratt.

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.