It feels like things have really come full circle this Session… We started with Democrats coming into this year promising tax relief for Minnesotans. Yet every time Senate Republicans pushed for a measure that delivers on that promise, Democrats backtracked. Now here we are, mere weeks before our adjournment date, and Democrats are once again failing to deliver on the very thing they claimed to prioritize. Instead, Democrats put forward a tax bill that raises taxes by $1.2 billion. Bottom line: Democrats have no interest in addressing the needs of Minnesotans.
Many of the proposals in the tax bill exclude middle class Minnesotans who have suffered most at the hands of inflation. Under the Democrats’ bill, a single filer earning over $75,000 gets no refund. That immediately leaves out some of our most valued professionals: plumbers, nurses, law enforcement officers, and more. Prices are on the rise in every aspect of life, and instead of offering tax relief for those that will be affected, this bill leaves out a key group of taxpaying Minnesotans. We want tax relief for all, not just tax relief for some.
This tax bill also disincentivizes businesses from doing business and being successful in Minnesota. One portion enforces worldwide reporting, which will require any business that does business in Minnesota to now report their entire income to Minnesota. This practically guarantees that they will be penalized and forced to pay more for doing business in Minnesota. We’ve already seen a countless number of businesses crossing borders to move their headquarters to North Dakota, South Dakota, and Wisconsin—this will just exacerbate a problem that has already been occurring. The bottom line is businesses in Minnesota will be punished for doing well. This will be a costly, overly complicated program that will hurt our state.
Senate Republicans offered multiple amendments that prioritize taxpayers in the future. One of which would have created a permanent and automatic refund program to ensure taxpayers are first in line when there’s a government surplus. Another amendment would have required a supermajority vote to raise income taxes. Of course, Senate Democrats voted against these on party-line votes.
With a historic surplus, we had the opportunity to pass equally historic tax relief, which is exactly what families have been asking for. Instead, Senate Democrats prioritized bills that raise taxes, pander to the metro, and disregard the needs of Minnesotans. The Democrats have one theme this year and it’s clearly “Broken Promises.”