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*May 8, 2023*
Legislative Update
MN FaMLI
Last week was Small Business Week, a time to celebrate the great things our local small businesses do for our communities, including providing needed services and creating jobs in our district.
We had a very long debate on Tuesday over the Democrats' Paid Family and Medical Leave bill. This bill would impose massive mandates on virtually every business in the state, and raise taxes on all employees to fund a massive new bureaucracy and 400 new government employees. Local businesses are very worried about how this will affect their ability to provide good-paying jobs for their employees while also complying with these new mandates and taxes.
This bill, if signed into law, would cause Minnesotans who already have access to paid leave to be taxed even more for a benefit they already have, as many businesses in our state already offer a paid leave plan. The new payroll tax also has no cap, so while it is currently fairly low, it could be increased to any amount after the fact. At the same time, the tax currently in the bill is too low to cover the costs of implementing the plan, so in order for this to actually go into effect, the department will have to raise the tax just to keep it running.
Republicans proposed an alternative that would offer a private insurance option instead of creating a new bureaucracy and costing tax payers billions more. You can see the details of this proposed alternative in the table above. Unfortunately, House Democrats voted that alternative down.
This bill has passed the House, but the Senate has not yet voted on it. I am hopeful that the Senate will see that this bill is completely unreasonable and a huge burden on job creators and employees.
Please Contact Me
It?s an honor and privilege to work for you at the Capitol. Don?t hesitate to contact my office at any time this session to share your thoughts, concerns or ideas. I am here to serve you!
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255 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
651.296.5091
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