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Legislative News and Views - Rep. Brian Daniels (R)

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Legislative Update from Rep. Brian Daniels

Friday, March 5, 2021

Dear Neighbors,

Last week, I discussed details of the state’s updated budget forecast.

This most recent update gives us a clearer picture of the state’s economic outlook and helps us set the new two-year budget.

As mentioned on Friday, updated numbers show the state is looking at a $1.6 billion budget SURPLUS because of a higher revenue forecast, lower state spending, and an increased surplus for the current fiscal year.

On its face, this is good news for the state’s economic outlook and should take all of the proposed tax increases being pushed Governor Walz and Democrats off the table.

The governor and Democrats have publicly stated their support for massive tax hikes that would raise taxes on families of every income level and would slow our economic recovery, and our efforts to help businesses, jobs and paychecks come roaring back to pre-COVID levels and beyond.

While the recovery is underway, thousands of Minnesotans and small businesses are still hurting significantly due to Walz’s harmful shutdowns.

This has been illustrated by the recent debate in St. Paul over exempting Paycheck Protection Program (PPP) loans from state taxes. 

For those that may not know, the federal Paycheck Protection Program provided forgivable loans to small businesses that were struggling to stay afloat during the worst of the pandemic. These forgivable loans allowed businesses to keep their doors open and staff employed despite the significant financial losses that were being incurred at the time. 

These loans are not taxed at the federal level or by any of the other states in the upper Midwest, except Minnesota.

This means that thousands of Minnesota businesses that employ our friends, families, and neighbors are being hit with massive tax bills from the state. At a time when our economy is starting to come back, this is the last thing that is needed.

The PPP issue is quickly becoming one of the most pressing issues of the 2021 legislative session. That’s why we must provide a fix to this problem and exempt PPP loans from state taxes. We cannot let this important change get lost in end-of-session political games. Let’s get this done.

Staying in Touch

Please do not hesitate to reach out to me to share any thoughts or concerns you may have about state government or the job I'm doing as your representative. It would be great to talk with you. I can be reached by phone at 651-296-8237 or via email at

Have a great weekend,