This week Governor Walz released his budget proposal. The proposal increases the budget by over 25% and includes a number of permanent tax increases, the creation of new government agencies, and the financing of divisive policies such as marijuana legalization and Driver’s Licenses for All. Notably missing is the repeal of the Social Security Tax. 

Senator Karin Housley (R-Stillwater) released the following statement in response:

“Minnesotans were promised that legislators would work across the aisle to deliver permanent tax relief, and today’s budget does not reflect that. Instead, Governor Walz is raising taxes. In a time of rising costs that are hurting families, Minnesotans want financial relief that eases the burden of inflation. I’m extremely disappointed that the elimination of the tax on social security was not factored into this week’s proposal. When all our neighboring states are exempting social security benefits from taxes, by not following their lead, Minnesota is sending a message that we are not a desirable state for retirement. With such a historic surplus, I’m disappointed the Governor’s proposal didn’t do more to provide permanent tax relief.”

Tax increases included in the bill:  

• $1.2 billion in taxes to finance a Paid Family and Medical Leave Fund – to be paid by every employee and employer
• $349 million transportation tax
• $36.8 million gross receipts sales tax on cannabis products 
• Car registration tab fees