Senator Anderson: Democrat tax bill is full of broken promises

Friends and neighbors,

This week, Senate Democrats passed a tax bill that raises taxes by $1.2 billion through a new mandatory worldwide reporting tax, which has not been implemented in any other state. This legislation fails to deliver meaningful tax relief and does not provide for the full repeal of the Social Security income tax.

In fact, a Democrat-offered amendment to repeal the tax on Social Security included a tax increase that was so extreme, even Democrats did not have the votes to pass it. 

All 33 Republican senators would have put up votes for a clean repeal of this burdensome tax. Yet Democrats who campaigned on this issue broke their promise to Minnesotans by not joining us in demanding this change. With a $17.5 billion surplus, our state has more than enough money to end this tax once and for all. This historic surplus also emphasizes just how severely Minnesotans are being overtaxed. We should be passing meaningful tax relief, not tax hikes. According to Democrats, our surplus is not enough to provide tax relief and support their extreme spending habits.

Additionally, the tax bill includes a very controversial tax known as “worldwide” or “global” reporting. This means that any business with a presence in Minnesota will be forced to report all income, even income from outside Minnesota in a way that no other state in the country or the world requires. This risky move will affect businesses based inside and outside of the state and will likely force them to reconsider how much they are willing to invest to do business in Minnesota. 

During the floor debate, Senate Republicans attempted to offer a number of amendments, which were either struck down or ruled out of order. Among them:

  • Create a permanent and automatic refund program to ensure taxpayers are first in line when there is a government surplus
  • Require a supermajority vote to raise income taxes
  • Eliminate the child care tax credit 2030 expiration date
  • Restrict the use of public safety aid to only licensed peace officers
  • Prohibit funds from going to cities or counties that took actions to “Defund the Police” through reduced funding for peace officers over the last four years

Democrats rejected most of our proposed amendments. Republicans did, however, successfully amend the bill to expand the list of eligible baby products for a tax exemption. With Minnesota families struggling to afford everyday essentials due to rising inflation, this is a way we can provide some much-needed financial relief.

As we near the close of the 2023 legislative session, I will continue to stand up for hard-working Minnesotans and push back against big government spending.

Putting Minnesota Students First

Additionally, last week at the Capitol, Senate Republicans rolled out our “Students First” education plan that presents a better alternative to the Majority Party’s mandate-heavy education bills. Our plan aims to directly assist students and address education shortfalls.

Schools are sounding the alarm that mandates in both the Democrats’ education bills and their one-party control agenda will use all the extra funding in the proposed formula increases. This means that Democrats will only drive our schools into more deficits. That is why Republicans put forward an alternative that prioritizes students, literacy, and funding that directly benefits learning in the classroom. 

To put Minnesota students first, our plan provides a 5% increase on the formula each year, with no new mandates; a 65% increase for the special education cross-subsidy; $100 million for literacy; and $200 million for school safety. The Students First plan also includes $100 million for additional support for property-wealth-poor districts through equalization.

Alarmingly, only half of Minnesota students are proficient readers. I strongly believe that we must prioritize our core academics to get our schools back on the right track. It is extremely disappointing that the Democrat trifecta does not share this same priority.

Contact My Office

I want to hear from you, my constituents, on issues that are important to you. Please feel free to reach out to my office with any concerns or ideas you may have. I will continue to keep your thoughts and concerns in mind as legislation comes before me. You can contact my office at sen.bruce.anderson@senate.mn or 651-296-5981.

Sincerely,

Bruce Anderson