Frustration over DFL holding up $4b of tax relief for leverage on unrelated spending bills

By: Senator Carla Nelson

A lot of words come to mind when I reflect on the 2022 legislative session, which ended with many missed opportunities. Disappointment. Anger. Frustration. Sadness. 

The legislature adjourned without passing several critical bills, including historic tax relief, funding for law enforcement, investments in student literacy and special education, and resources for long-term care facilities in crisis. But it didn’t have to be that way.

As the chair of the Senate’s tax committee, I can provide a first-hand account of what is achievable when we work together. My counterpart in the House, Paul Marquart (DFL-Dilworth), and I worked tirelessly and were able to reach an agreement on a fantastic tax bill – one of the best this state has seen – well before our constitutionally required adjournment date. Our agreed-upon bill fully and completely eliminated the ridiculous and harmful tax on Social Security benefits, reduced the first-tier income tax rate so every single taxpayer would get a tax cut, provided property tax relief and relief for working families, and much more.

Our bill would have helped every Minnesotan, including seniors, working families, students, young families, and everyone in between. It would have put much-needed tax relief in the pockets of hardworking Minnesotans at a time when they need it most, with inflation at 40-year highs and everyday necessities becoming more and more unaffordable.

That tax bill didn’t become law.

You might be asking why. It’s a great question – we had a bill that was written in a bipartisan fashion, agreed to by everyone involved including leaders of both Republicans and Democrats, and finished with more than enough time for a vote in both the House and Senate.

The reason it did not pass is simple: According to the Speaker of the House herself, the House Democrats held up the tax bill to use as leverage on unrelated spending bills. They refused to even bring this historic, much-needed, agreed-upon tax cut up for a vote. 

This is a painful textbook example of putting politics ahead of people. It is shameful, and Minnesotans will be the ones harmed the most.

So what happens now? The short answer is, I’m not sure. We still have an agreement on the fantastic tax relief bill. If Gov. Walz were to call us back for a special session, we could pass that bill immediately and get this important tax relief into people’s pockets right away.

But only Gov. Walz has the authority to call us back for a special session. The ball is in his court. He and his allies in the House of Representatives chose to play games instead of pass an incredible tax bill that everyone agrees to, so I am not optimistic he will call us back to finish the job. 

If he doesn’t, you can be certain that the Senate will pick up right where we left off next session and continue working to return the surplus to taxpayers in the form of permanent, ongoing tax relief.