Dear Neighbors,
This week, House Democrats blocked bipartisan legislation that would have averted a massive tax increase on Minnesota employers. Because of their inaction, the issues already caused by 40-year highs in inflation and rising energy costs will be made worse as employees could face layoffs and prices will likely rise higher as employers deal with this tax hike.
A recent article in the Mankato Free Press quotes Greater Minnesota employers saying they face tax increases in the tens of thousands of dollars next year, in one case a 130% increase which translates to a $21,000 spike.
The issue arises from Minnesota’s need to replenish its Unemployment Insurance (UI) Trust Fund by more than $1 billion. The fund was depleted due to record levels of unemployment claims by Minnesotans as Governor Walz forced businesses to close during the pandemic. With more than $10 billion in budget surplus and federal aid dollars, Minnesota has more than enough resources to replenish our UI Trust Fund and stop these taxes from taking effect.
In fact, the legislation that was blocked by House DFLers on Monday is supported by Governor Walz, Senate Republicans, House Republicans, and most Senate DFLers.
Rarely is there such broad bipartisan consensus on an issue. That makes the actions of House Democrats even more disappointing.
It's been more than a full month of complete inaction by House Democrats on this issue. The House DFL UI bill — which the Walz Administration testified would result in six years of tax increases on businesses— has been stalled since it passed the Workforce Committee on February 9th. In contrast, Senate Republicans passed a full UI repayment bill on an overwhelming 55-11 vote a full month ago.
After more than two years of being forced to close their doors because of the pandemic, our main street employers can ill-afford to deal with this type of a tax increase. They deserve better.
Staying in Touch
Please do not hesitate to reach out to me to share any thoughts or concerns you may have about state government or the job I'm doing as your representative. It would be great to talk with you. I can be reached by phone at 651-296-8237 or via email at rep.brian.daniels@house.mn.
Have a great day,
Brian