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 Eric Pratt (R-Prior Lake) released the following statement in response:

“I find the Governor’s budget proposal troubling and disappointing. Minnesota currently has a $17.6 billion surplus, and there is no reason we should be increasing taxes. Minnesotans across the state are facing rising costs for everything, and the last thing they need are new tax increases. This proposal increases the state budget by over 25% with large spending increases, expanding regulatory mandates, and creating new government agencies. Hard-working Minnesota families need jobs and permanent tax relief to cope with historic inflation—they can’t afford to pay more for divisive policies and higher taxes when we already have a record surplus.” 

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
• Sales tax in the 7-county metro area, amounting to $290 million over 4 years
• $36.8 million gross receipts sales tax on cannabis products
• Car registration tab fees – increase of fees in the first year from 100% to 160%
• Filing fee increases for getting drivers licenses plus additional fee for Real IDs