ST. PAUL – In the face of a $17.5 billion budget surplus, House Democrats continued their financial attacks on Minnesotans Thursday by approving their comprehensive taxes proposal which includes additional tax increases of $2.2 billion.
“Over the past two weeks, House Democrats have brought numerous proposals up for a vote that dramatically increase state spending while implementing billions of dollars in tax increases,” Fogelman said. “Overall, their tax increases will hurt everyone. It is just senseless and wrong that Democrats have promoted out-of-control spending and tax increases when the state has a $17.5 billion surplus.”
Fogelman said the House taxes proposal would raise taxes by $2.2 billion by creating a 5th income tax tier and forcing corporations to claim all worldwide income on their Minnesota returns.
But Fogelman added that bill represents only a portion of the tax increases House Democrats want to put into law this year. There’s also $3.5 billion in transportation tax increases, which would raise the costs of license tab renewals and the Motor Vehicle Sales Tax, increase the sales tax in the Metro Area, and implement a 75-cent delivery tax on items that are dropped off at your front door.
Every Minnesota worker and employer would face higher taxes to fund a new state-run insurance program that covers paid family and medical leave. A separate sales tax increase in the Metro Area would also be implemented in order to fund housing programs.
In all, Fogelman said the proposed Democrat tax increases would total nearly $10 billion even though the State of Minnesota sits on a $17.5 billion budget surplus.