Do Nothing Democrats Stop Broadly Bipartisan Bills
Tax Fixes for Minnesotans
Local business owners and workers forced onto unemployment have faced plenty of financial difficulties this past year, and should not be forced to pay more in state taxes.
We tried to ease their fears this week, attempting to approve legislation that would exempt forgiven business owner Paycheck Protection Program (PPP) loan income from state taxes, as well as Unemployment Insurance tax elimination for COVID-19. Unfortunately, the House Democrats refused to allow either bill to receive a floor debate, as the entire House Majority unanimously opposed both measures.
These are common sense measures have broad bipartisan support, the unfortunate reality is that Democrats wants to use these important issues as leverage for end of session negotiations with the Republican controlled Senate. They are putting these petty games ahead of what Minnesotans need and it is sickening.
Impacted business owners who accepted PPP loans had to use those funds for business expenses, such as employee wages or rent, which is why Congress ultimately forgave the loans and made them free from federal taxation. The Minnesota Senate recently approved the state PPP Tax relief proposal on a bipartisan, and veto-proof vote of 55 -12.
Employees who were laid off due to COVID-19 also would have received relief, as the proposed House legislation would have exempted $10,200 in Unemployment Insurance income, the same exempted by the federal government — making no other underlying changes to Minnesota unemployment insurance law.
House Democrats, with a giant surplus and money raining in from the federal government, voted against $269 million of tax relief to people exclusively who lost their jobs last year.
With a significant state surplus, there is no reason to force our struggling business owners and workers laid off during the last year to pay these unexpected tax burdens. We should be acting quickly in order to give them some peace of mind as the surplus is largely made up from one time revenue, so it makes sense to use it on one time tax relief.
In-Person Summer School Funding
During the House Floor session on Thursday, we attempted to bring forward a bill to help students who have been hurt by the challenges of distance learning.
This bill would provide funding for summer school programs directly to schools, so they could choose the programs best suited to their needs. It would also fund Early Learning Scholarships for the most vulnerable children with the highest need.
I've heard from so many of you about how— despite the best efforts of teachers, students and parents— distance learning has taken a toll on the progress of so many Minnesota students. As a father with students who have been in distance learning, I have seen first hand how challenging it can be. This proposal will fund local schools in their efforts to catch students up over the summer.
Unfortunately, the House Majority did not join us in our efforts so the motion failed. We will keep fighting to make sure our students and schools have the resources they need to bounce back from the harm inflicted over the past year.
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