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Legislative News and Views - Rep. Greg Davids (R)

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Wednesday, March 16, 2022

ST. PAUL – The March 15 deadline to prevent unnecessary tax increases on every business owner in the state has come and gone, and State Representative Greg Davids (R-Preston) said House Democrats are solely to blame for the upcoming financial pain local employers are going to see.


“I am so disappointed with House Democrats’ decision to play games with Minnesota’s job providers,” Davids said. “With a $9.3 billion surplus we shouldn’t be raising taxes on anyone, yet House Democrats refused to even bring a bill forward that would solve this problem.”


Minnesota needs to replenish its Unemployment Insurance (UI) Trust Fund by more than $1 billion. Davids said available state surplus funds could be used for this purpose, as could federal COVID relief funding that totals more than $1 billion. If neither of these pots of money are utilized, the default repayment is tax increases on local business owners by 15% or more.


Last month, Governor Walz’s employment commissioner said March 15 was the deadline for the lawmakers to pass legislation and prevent significant tax increases on Minnesota businesses. Davids said the commissioner told the workforce committee that a failure to act would be an “unparalleled circumstance,” “unprecedented,” and would be “extremely difficult and administratively complex and cumbersome” for the State of Minnesota.


Since then, the Minnesota Senate approved a full UI repayment bill on an overwhelming 55-11 bipartisan vote three weeks ago, while House Democrat leadership did nothing. 


“Our local employers have had it pretty rough over the past two years,” Davids said. “The last thing they need is an unnecessary tax increase at a time when state government more than $9 billion in unallocated revenue, but that’s exactly what they’re going to get thanks to House Democrats.”