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 agency, increased bureaucracy, substantial growth of government, and increased taxes for every Minnesotan. The tax hike is expected to be at least $2.8 billion for the first year of the program and increasing each year after.
“Once again, we have seen Senate Democrats push forward and pass an extreme bill that seeks to adopt a one-size-fits-all-mandate that will grow government, raise taxes, and hurt small businesses across the state,” said Senator Andrew Lang (R-Olivia). “We know the tax hike will equate to at least $2.8 billion in the first year alone, but we have no idea just how devastating this bill’s impact will truly be. Many companies already offer paid leave benefits for their employees, and this bill will ensure employees lose access to the benefits they like. Senate Republicans offered an alternative plan that would have utilized the free market to offer an insurance option, but unsurprisingly, Democrats were unwilling to revisit that plan. This bill is going to be costly for Minnesotans, and it will drive businesses out of our state.”
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 last year.
On Monday morning before the bill came to the floor, 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.