This week, Democrats finally unveiled their taxes omnibus budget bills. Not only is this late in the session to finally have these bills together, they also have included provisions in many of the bills that never were heard in committee. Unsurprisingly, the bills include numerous tax increases that will prove harmful to our recovery and for Minnesotans.
In total, their tax bill alone bill raises taxes by more than $1 billion and fails to fully protect businesses from Paycheck Protection Program (PPP) tax hikes on forgiven loans. All of the states around us in the Midwest, have already done tax conformity. We don’t live in a vacuum, this will increase the migration of businesses out of Minnesota.
The bulk of the tax revenue comes from a brand-new 5th tier income tax of 11.15%, like the Governor's plan, which would give Minnesota the 2nd highest top income tax rate in the country and directly impact many businesses who have been hit hard during the pandemic. Another reason for higher income households to move to another state.
On top of this, Democrats are seeking even more tax revenue through their Transportation Omnibus bill including a new gas tax and light rail tax. In fact, their transportation bill raises more than $1.5 billion in tax and fee hikes.
Billions in surplus, and billions more in extra funding from the federal government, Yet they still want to raise your taxes by billions more. Now is the time for us all to pay attention to the details and not be distracted by the springtime snow job.
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