June 19, 2021

GOP legislature slaps down Minnesota Governor’s proposed tax hikes

Following a year in which racial unrest and a global pandemic put unprecedented strains on citizens and economies, states across the country are working to craft fiscal plans capable of adapting to shifting realities.

In riot-ravaged Minnesota, Gov. Tim Walz of the Democrat-Farmer-Labor Party initially proposed a two-year budget plan that included a series of unpopular tax hikes, but ultimately dropped several of those increases amid pressure from Republican lawmakers, according to the Washington Examiner.

Walz had originally put forth a $52.4 billion budget that represented the largest such plan in the state’s history and which would have boosted spending over the prior budget by $4 billion.

However, in light of a newly-projected – and unanticipated – budget surplus of $1.6 billion and the addition of $2.6 billion in federal relief funds, the governor bowed to pressure from the GOP to submit a revised budget and pull back on some, but not all, of his desired tax increases.

According to the Star-Tribune, Walz eliminated roughly $1 billion in tax increases targeting large estates, corporations, and cigarette sales, though he continues to push for a new income tax on Minnesota’s highest earners.

Having already made the aforementioned concessions, Walz must still negotiate with a state legislature that is divided and in which the Republican-controlled Senate has already promised that no tax increases would occur this year. The GOP’s budget goals include zero tax increases, a 5% decrease in administrative expenditures in the government, and $591 million in additional tax cuts, as the Star-Tribune noted.

Though Walz has clearly begun moving toward the center from his initial plan, Minnesota Senate Majority Leader Paul Gazelka (R) remained dissatisfied, saying:

He still wants to raise taxes. Can you believe that? When you think about all of the billions of billions of dollars coming in from the federal government, and our $1.6 billion surplus, he still wants to raise taxes.

We’ve got to work together with the governor, but it’s not to raise taxes, it’s to pass a balaned budget that works for Minnesota.

One area of potential consensus between the rival factions is that of tax relief for those who have received unemployment benefits during the pandemic and for businesses that obtained Paycheck Protection Program loans that are not federally taxable, but would be taxed at the state level unless actions is taken this year, according to Minnesota Public Radio. However, the appropriate amount of relief remains a subject of disagreement, with House Minority Leader Kurt Daudt (R) opining:

Taking money for struggling businesses is indefensible when state government is flush with cash. We have billions of dollars available to fully protect workers and businesses from unnecessary tax hikes, and ensure that government is not profiting off relief dollars intended to help Minnesotans.

Though it is clear that Republicans in Minnesota have succeeded in nudging Walz in the right budgetary direction, time will tell whether the final product of negotiations is something that will substantively ease the burden on taxpayers and ensure that federal relief funds are used as intended.

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18 Responses

    1. Yea! but I bet Cuomo has already figured out how to use the relief funds to pay for his legal fees, in the up and coming trials he is facing. Don’t let him use any public funds to pay his legal fees,

    2. BRAVO! Do it nationwide.! i bet the others are cowards and afraid of what pelosi will do to them.

  1. ANTIFA, BLM, NAACP, etc. should pay for ALL of that riot damage in Minneapolis and court costs for the troublemakers responsible for the riots. That expense should not fall on Minnesota taxpayers or companies.

    1. Agreed.
      Every Governor & Mayor in DemoRAT Cities, who did absolutely nothing to stop the RIOTS from the Domestic Terrorist, ANTIFA AND BLM, WHO CAUSED INJURIES TO OTHERS AND THE DESTRUCTION OF THE CITIES, SHOULD HAVE THEM PAY FOR ALL THE DAMAGES, IF NOT ANTIFA & BLM LEADERS, SHOULD ALL BE SENTENCED TO JAIL FOR 10 YEARS TOGETHER WITH THE GOVERNORS & MAYORS.

      1. You know that BLM made 100 million during all of this. All of that money should be seized, and used to help all of the people that lost everything because of them.
        All of the politicians, and police officials that held, and did not release the evidence of what really happened should be held accountable as well. They allowed cities to burn, and people to die while they sat on the proof that could have stopped it. The proof that Floyd had killed himself by over dosing on drugs.

    2. Good suggestion. Alternatively, the Governor and the mayors of the effected communities could pay for it personally.

    3. The federal government does have over all control of the border, however since this is a republic and not a kingdom, the states also have a say when it comes to protecting their citizens. They could put a travel ban on illegals coming across their borders due to the covid19 spread they are causing, not to mention the drugs, the human trafficking, criminals, diseases, economic, and multiple other problems they are causing. Put them back on the other side of the border, and send them south, they came on their own, I don’t see why we should pay their way back, we didn’t pay their way to get here. We don’t owe them anything.

  2. rm a response to you,
    I totally agree with you. Floyds, the estate should pay for all the damage done in the city. Now I know I will not be heard cause all the stations in the U.S. are controlled.

    I have friends there and all they want is OUT! They want to go south where the people are not out to get the white population. They say it’s not the same anymore skin color has taken over the state and there are not the same people anymore.
    They do not know where to go but are getting a realtor to find a property in a town that is loving and full of care for each other.

    They are retired and are afraid if they stay will lose their lives there. They are just hateful when it comes to the president can’t believe that he is acting like a spoiled child. They are my friends and are totally against everything Biden has done. The fall did it and that really was the message..

    Now I have friends in Texas. They think Biden has gone off his rocking chair and wants him out of office. They want the wall to continue and put the workers back to finish the job. We have to pay for it anyway so let’s get going and do the job.

    So I hope well for my friends in the city that went crazy over a bad situation.

    1. they are all welcome in florida too!affordable housing ,nice schools,low taxes,nice beaches,and no state income tax.i’ve been here for 44 years and helped move a company out of tax ridden connecticut.never regretted the move.but i can’t believe a state with a balanced budget amendment is a swing state.but the new yorkers come here with their liberal ideology and try to turn us blue!they soon forget why they moved here in the first place!

  3. I think that Gov. Noballs Walz and Mayor Jacob Freyed should have their salaries cut 50% to pay for the destruction. The more they allowed to happen, the more intense it became. BLM stood out DEMANDING all black protesters that were arrested be released because it is their right to peacefully protest. Next we have VP HARRIS that jumped in with Minnesota Freedom Fund. She promoted the funds to bail out the criminals. She needs to pay 50% of her wages. BLM caused the destruction and devistation. They were raking in funds like mad and making major donations to the Democrats campaigns. I think they should donate that same amount of money for cleaning and replacement of destruction. It’s time the guilty parties pay instead of the tax payers.

  4. I like to know with all the businesses closing and people losing jobs and everyone with no money where do they think these tax hikes will be coming from. Washington and states are spending Trillions of dollars on illegals that we dont owe a dam penny to and to other countries, to line the lefts pockets and do their pet projects with money this country does not have to waste. Can you all be thus stupid not to see we are done as a free America. We need a rescue now and send the minor children back across the border. Mexico is sick of Bidens crap.

  5. The reason why we have a surplus from the federal government is that we had some prospers years with President Trump at the helm Now the Dem are salivating. To bankrupt the treasury then we will see high taxes and industry leave the country

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