Dear Neighbors,
Finance omnibus bills were posted this past week by House Democrats. These bills represent the priorities of the Democrat party (since they are in the majority) and will shape what the final state budget will look like. While there are provisions scattered across these bills that I support, most of these bills contain items that I cannot and will not vote for.
Minnesota has a $1.6 billion surplus and billions more coming from the federal government. We do not need to be raising taxes on businesses, and families, and slowing down our economic recovery. Unfortunately, my colleagues across the aisle do not seem to see eye to eye with me on this as their bills will drastically increase taxes and burdens on all Minnesotans.
It is disappointing at a time when I was hopeful that we could come together around issues that all Minnesotans support, like providing needed aid to small businesses for example. Instead, Democrats are spending their energy and your tax dollars on items that will prolong the suffering and hurt Minnesotans.
The Democrat Tax bill raises taxes by more than $1 billion.
Below is a summary of the tax bill:
- Fails to fully protect businesses from the Paycheck Protection Program (PPP) tax hikes on forgiven loans.
- Would make Minnesota the 2nd highest income tax rate in the country, and directly impact many businesses who have been hit hard during the pandemic.
- Caps PPP relief at $350,000, meaning many businesses will still be taxed on “forgiven” PPP loans that were used to pay employees and keep their doors open during a forced government closure/reduction in business.
The Democrat Transportation bill raises taxes and fees by more than $1.5 billion.
Here is a quick rundown of the transportation bill:
- Gas tax increase ($363 million over four years) by linking Minnesota's gas tax to the Highway Construction Cost Index. This would result in an automatic annual inflationary gas tax increase.
- Sales tax increase to fund light rail and other transit ($916 million over four years). Democrats are proposing a half-percent increase in the Metro sales tax.
- Motor Vehicle Sales Tax (MVST) increase ($120 million over four years).
- Registration tax increase ($149 million over four years) through changes to vehicle depreciation schedules.
To recap, Democrats introduced more than $1.5 billion in transportation tax increases without a single bill hearing or minute of discussion in committee.
This is the wrong path forward for Minnesota.
Staying in Touch
I will continue to work, day in and day out, to represent you and your family at the state capital. Please be sure to reach out to me if you have any questions, concerns, or ideas on ways to improve state government. I can be reached by phone at 651-296-4237 or via email at rep.paul.novotny@house.mn.
Stay safe and have a good day,
Paul