Legislative Update from Rep. Sondra Erickson

Dear Neighbors,

It’s been another busy week in St. Paul as the budget discussion has officially kicked off with the release of Governor Walz’s 2021-2022 budget proposal.

The Governor’s proposal is headlined by $1.7 billion in tax increases, major spending hikes, and almost no meaningful spending cuts.

Disappointingly, out of a massive $52.4 billion budget, Governor Walz is proposing just $150 million in budget reductions. That is not even a 0.3% reduction in spending — an outrageously small amount during a year where so many Minnesota families and businesses have seen their incomes fall off a cliff. 

Here are some more high-level details of the budget proposal:

• 15% increase to Minnesota's business tax rate (9.8%->11.25%) which would vault Minnesota to #2 in the entire nation.
• 10% increase to the top tax bracket, creating a fifth tier and give Minnesota the third-highest income tax rate in the nation. 
• Regressive tax hikes on things like cigarettes and vaping products, which the Governor's budget office says impact low-income Minnesotans the most. In fact, out of the Governor's $1.7 billion in tax increases, $941 million are regressive taxes that will impact Minnesotans of every income level. The Governor’s budget office has shown in the past that business, sales, and tobacco tax increases disproportionately impact low-income Minnesotans when compared to wealthy taxpayers.

It should come as no surprise that I am opposed to the Governor’s budget proposal. Governor Walz should not be seeking to raise taxes and grow the size of government when so many Minnesotans are hurting because of his harmful business shutdowns. 

We should instead be looking to streamline government programs and reduce spending as a means of balancing the budget. This budget does not represent the values of Minnesota families. Instead, it takes more of their hard-earned money and continues the government’s intrusion into our daily lives.

Stay tuned on this as I will continue to keep you updated on developments as the legislative session progresses.

Staying in Touch

Please be sure to reach out to me if you have any questions or concerns. I can be reached by phone at 651-296-6746 or via email at rep.sondra.erickson@house.mn.

Have a good day,

Sondra