Raising Taxes with a $4 Billion Surplus
The last two weeks have been spent with long days on the floor filled with debates and amendments. The House Democrat Majority has brought forward their Omnibus Budget Bills that will serve as the beginning of negotiations with the Republican Senate. Here are a few notes on some of the bigger bills passed:
State Government Finance: The Omnibus State Government Finance bill represents an increase of $39.5 million over its base funding and $5.5 million over what the governor requested. While many Minnesotans are struggling and making do with less, this bill does not ask our state agencies to tighten their belts at all. Your tax dollars should go to services, not increased government overhead.
Taxes Omnibus: This bill raises taxes by more than $1 billion for the upcoming biennium with the largest surplus in recent memory. A brand-new 5th tier income tax would give Minnesota the 2nd highest income tax rate in the country and directly impact many businesses who have been hit hard during the pandemic. The fact is we do not exist on an island or in a vacuum, people and businesses are able to leave if these policies keep moving forward.
The bill does not fully exempt Paycheck Protection Program loans from the federal government, meaning many businesses would still be taxed on forgiven PPP loans that were used to pay employees and keep their doors open during a difficult year.
Transportation Omnibus: The House majority’s transportation package raises taxes by $1.6 billion over the next four years at a time Minnesota has a surplus of more than $4 billion. These taxes will hit Minnesotans of all income levels at a time when many are still struggling and will make Minnesota a more expensive place to live and drive. There is simply not a need to raise taxes to take care of one of our most basic functions of government.
Solutions require a conversation and working together. Unfortunately too much is being done by edict, and without listening to the voices of the people in greater Minnesota through their elected representatives. Communities are different, because they are made up of individuals who are different and unique. They need and deserve choices and options.
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