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Capitol Press Corps and Interested Parties,
As Democrats continue to fight amongst themselves over which taxes they plan to raise on Minnesotans with a $17.5 billion surplus, I wanted to highlight the offer put forward earlier this week by the House DFL that brazenly violates House rules and raises taxes by hundreds of millions of dollars despite zero committee hearings and zero public testimony or input on the new proposed provisions.
Democrats are so desperate to raise taxes they are literally inventing new tax increases out of thin-air. Democrats must explain to the public why they are violating House Rules and bringing in never-before-heard provisions into the Conference Committee.
If Democrats can't agree on which taxes to raise, they have a simple solution — don't raise taxes with a $17.5 billion surplus.
The latest House offer (dated 5/15, spreadsheet here) includes the following provisions that never received a hearing in Committee, and were never introduced as bills:
- Federal conformity to GILTI — raises taxes $239.4 million in FY24-25 and $379.1 million in FY26-27;
- Reduced Deductions for Dividends Received (50%/65%) — raises taxes $43.6 million in FY24-25 and $69 million in FY26-27;
- Repeal qualified data centers with a software exemption — raises taxes by $75.6 million in FY26-27;
- Corporate net operating losses modified from 80% to 70% — raises taxes by $35.5 million in FY26-27;
- Corporate Tax Minimum Fee Increase — raises taxes by $42.8 million in FY26-27
In total, the 5/15 Democrat Tax Offer raises taxes by $885 million over the next four years with provisions that have never once been heard in committee this session.
House Rules clearly state (emphasis added): "A conference committee report must include only subject matter contained in the House or Senate versions of the bill for which that conference committee was appointed, or like subject matter contained in a bill passed by the House or Senate."
By no definition has the House Tax offer met this standard, and it would be a violation of House Rules to bring any of these provisions back in the final conference committee report.
House Republicans will strenuously object to any attempt by Democrats to bring any of these provisions to the House floor.
Thanks,
Christine Snell
Director of Public Affairs
Minnesota House Republican Caucus
612-345-2547 (cell)
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