ST. PAUL - An unnecessary tax increase on local employers has come to an end thanks to legislation supported by State Representative Bjorn Olson (R-Fairmont). The bill addressed Minnesota’s unemployment insurance trust fund deficit.
“I am very happy the political games that were being played by the House majority have ended and that we have acted in the best interests of our job providers,’ Olson said.
Minnesota needed to replenish its unemployment insurance trust fund by more than $1 billion. Olson said $9.3 billion in available state surplus funds could have been used for this purpose, as could federal COVID relief funding that totals more than $1 billion. By not utilizing either of these pots of money, the default repayment was tax increases on local employers by 15% or more. Because the issue had not been addressed, Minnesota had been spending $50,000 a day just in interest costs.
Olson said the compromise plan that has been approved by both the House and Senate fully replenishes the unemployment insurance trust fund using existing funds and ends the tax increase on Minnesota’s job providers.
“Minnesota’s employers have struggled for the past two years trying to recover from the COVID pandemic, and they could not afford massive tax hikes,” Olson said. “I’m pleased all sides were able to reach consensus on this issue and that our local business owners will no longer be financially punished.”