SAINT PAUL, MN – Gov. Tim Walz released his $52 billion budget proposal for the 2021-2022 biennium on Tuesday. His plan proposes $1.7 billion in new taxes, including a 15% tax increase on businesses and a 10% hike on Minnesota’s top tax bracket. The proposal only calls for $150 million in cuts, or about 0.3% of the overall budget.
The Governor’s proposal did include a tax cut for working families, but it would not provide real relief to Minnesotans. Estimates are that it would only provide an additional $3 per month for families in the lowest income bracket. Furthermore, $941 million of the $1.7 billion tax increases are regressive, which would hurt Minnesotans at every income level.
Rep. Kristin Robbins, R-Maple Grove, released the following statement in reaction to the Governor’s proposed budget:
“Increasing taxes on Minnesota’s hard-working families and businesses following a year of shutdowns will make economic recovery even more difficult. Minnesota taxpayers can’t afford to pay for billions in state spending increases and our small businesses can’t afford a tax increase.
“Instead, we should balance the budget without raising taxes by tapping into the state’s over $2 billion “rainy day” fund. The state has prudently saved for this and now is the time to use it, rather than raise taxes on Minnesota families and businesses. If families can tighten their budgets, like so many have during COVID-19, government can find ways to cut spending in a $52 billion budget.
“As we come out of the pandemic, we need to prioritize the economic health of our families and businesses. Imposing tax hikes is the complete opposite of that goal.”