By Rep. Shane Mekeland
Minnesota’s 2022 legislative session began in January with converting a record state surplus into meaningful tax relief and getting a grip on surging violent crime among our numerous top priorities.
We now are entering the final month of the session and, while there is still hope on these issues, there also are reasons for concern. In fact, you could say we’ve actually taken a significant step backward by allowing an unnecessary tax on employers to take place despite the fact the state has a surplus of around $10 billion and growing.
Employers are now experiencing tax increases on their unemployment insurance rates because Minnesota has not taken action since our state’s unemployment funds were depleted during the pandemic. The Senate passed bipartisan legislation two months ago – by a veto-proof majority – to resolve this issue, but the House has not followed suit.
It is perplexing to see this issue stall in the House when it has received such bipartisan support this year. And now the House majority’s supplemental budget proposal for this session includes $0 to resolve this issue by repaying our state's depleted unemployment insurance fund. This is costing state taxpayers $50,000 per day in interest and leaving employers on the hook for a tax increase at a time when the state has a massive surplus.
Differences in how the House and Senate propose appropriating the state’s surplus present sizable gaps to close in the next few weeks. The Senate passed the largest tax cut in state history – at more than $8 billion – representing nearly the entire budget surplus. This includes eliminating the state’s Social Security income tax and reducing income taxes. The average tax relief per filer would be $759, with a family making $100,000 per year receiving a tax break of $1,066 every year.
Meanwhile, House Democrats propose $21 in new government spending for every $1 in tax cuts. Their approach spends more on programs, with total tax reductions in the House Democrat tax bill amounting to less than $600 million over the next three years compared to more than $12.2 billion in new government spending – a 14-percent increase.
As for public safety, we’re seeing violent crime continue to soar in our state and there has not been much movement in the House despite outward bipartisan support.
Before the session began, House Democrats touted stronger penalties for carjacking, house arrest for youth auto theft offenders, and grant programs aimed at recruiting police officers. And House Republicans earlier this session assembled a package of bills that would aim to reverse the dramatic increase in crime our state by holding criminals responsible for their actions, helping recruit and retain peace officers, and providing transparency on decisions from prosecutors and the courts.
Unfortunately, these common-sense proposals have not received the support they warrant. Numerous DFL-backed proposals that failed to receive committee hearings even were brought forward as committee amendments by House Republicans – only to be voted down by the House Democrats, who now propose giving more money to violence interrupters and growing the state government by tens of millions of dollars while adding dozens of new full-time employees in St. Paul.
Senate Republicans have been moving a public safety bill featuring measures worthy of bipartisan support. This includes criminalizing the offense of carjacking, along with increased penalties for violent crimes by repeat offenders and increasing transparency when prosecutors dismiss charges on a case.
We owe it to Minnesotans to provide meaningful, permanent tax relief and to get a grip on violent crime. Anything less should be unacceptable.
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