Gov. Walz Budget Released
This week, Gov. Tim Walz released his 2021-2022 budget proposal. Gov. Walz is proposing a 10% income tax increase, a 15% hike to Minnesota’s business tax, and regressive tax hikes on cigarettes and vaping products that disproportionately hit low-income Minnesotans. The Governor is proposing just .3% in cuts ($150 million) out of a $52+ billion budget.
I was disappointed to see the governor’s budget proposal. Minnesota is already one of the highest tax states, and putting an extra burden on job creators at a time when so many are struggling to recover from the pandemic and the accompanying shutdowns is not the way to balance our state’s budget. We have seen too many businesses close, or move to surrounding states. We have also seen too many of our citizens move out of Minnesota.
Fortunately, our state is only facing a mild budget deficit, rather than what had been projected before the election. We should and can cover it with minor adjustments to government spending, and by tapping the budget reserves. The raising of taxes at this time, as we recover from a year long economic shutdown, is not the right thing to do. Fortunately, we have some diversity in the legislature, and should be able to add reality to the discussion.
Lawmakers and the Governor must pass a new two-year budget by June 30 to avoid a state government shutdown.
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