Dear Neighbors,
Last week, I briefly mentioned the breaking news that Minnesota is projected to have a $1.6 billion budget surplus for the 2022-2023 biennium. On its face, this is great news for the state’s economic outlook.
However, thousands of Minnesotans and businesses are not feeling the benefits of the recovery. Governor Walz’s shutdowns and forced closures continue to wreak havoc on main street businesses and the men and women they employ. While big box stores thrive, these small businesses are gasping for air.
Thankfully, the federal government provided a lifeline during the summer through the Paycheck Protection Program (PPP). 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.
Now, many of these same small businesses are being hit with unexpected tax bills from the state of Minnesota. In fact, Minnesota is currently the only state in the upper Midwest that is taxing PPP loans.
This puts small businesses at a competitive disadvantage and will cause further damage at a time when so many are barely holding on.
The state has a $1.6 billion surplus, so there certainly is not a lack of revenue. We need to get this issue resolved now instead of waiting until the end of the session when it could slip through the cracks.
Staying in Touch
Please continue to reach out to me to share your questions, thoughts, or concerns. I can be reached by phone at 651-296-4293 or via email at rep.john.poston@house.mn.
Have a great weekend,
John