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

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Friday, April 28, 2023

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.


“To their credit, Democrats confirmed the long-running Capitol joke that there is no amount of surplus that would stop them from attempting to raise taxes,” said State Representative Greg Davids (R-Preston), Republican Lead on the Minnesota House Taxes Committee. “Unfortunately for Minnesotans, this was a year where they expected to receive significant and permanent tax relief, and House Democrats have killed that expectation.”


Davids 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 – not state income – on their Minnesota returns.


But Davids 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, Davids 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.