ST. PAUL – Recently, Governor Walz unveiled his budget priorities for the next two years, and despite the fact that Minnesota is sitting on a nearly $18 billion budget surplus, the Governor wants to massively increase statewide taxes and fees.
“I don’t understand how Governor Walz can be thinking about tax increases when Minnesota has already overtaxed residents by nearly $18 billion,” said State Representative Greg Davids (R-Preston)
Davids noted the Governor’s proposal includes nearly $5 billion in tax increases, including a $1.2 billion payroll tax on employers for paid leave and an increase on motor vehicle tabs. According to a report by Axios, a new car's registration cost would be determined based on 160% of the manufacturer's suggested retail price instead of 100%. That means if you bought a $40,000 vehicle, you’d pay about $308 more in tab fees in year one, per MnDOT. If you buy a used car that was originally a $40,000 vehicle, you would pay $51 more per year.
In totality, Governor Walz’s budget would spend $65.2 billion on state government programs in the next two years, which is a 26% increase in spending.
“With people spending more for groceries, gasoline, and heat, our surplus should be going back to the taxpayers and not being spent on state government programs,” Davids said. “Not one tax increase should be on the table this session, and we need to start prioritizing our hardworking Minnesotans and providing them with permanent and significant tax relief.”