Last Session, Democrats passed a bill that implemented a Paid Family Leave Program. It was one of their many extreme plans, and it was clear that it was going to cost Minnesotans. Their proposal included a new and excessively large government agency, limiting of benefits employees currently have, and a large tax hike. Republicans knew it would come with a hefty price tag, but even we underestimated just how crippling these news costs would be.

An actuarial study was recently done, thanks to Senate Republicans who pushed for it, and we now know just how much it’s going to cost Minnesotans. Unsurprisingly, it’s much more expensive than Democrats led folks to believe. The study found that the plan will require $630 million more than expected, and the tax rate will also be 31% higher than what Democrats originally claimed. The program was always going to be costly, but these new numbers are absurd. And make no mistake—we know who will foot the bill.

Republicans knew this one-size-fits-all mandate wasn’t the right move. Instead of listening to our concerns, Democrats with their “we know best” mentality pushed through this extreme bill. It’s too costly for the average taxpayer. The taxes and fees needed to make this program viable will fall squarely on the shoulders of employees and taxpayers.

We should also take a moment to consider another recent announcement: the state is projected to have $2.4 billion surplus heading into 2024. If that’s not proof of constant over-taxation, then I don’t know what is. So while folks are being consistently over-taxed year after year, Democrats are taking the opportunity to implement costly programs that will force taxpayers to pay even more to receive less.

Minnesota has become a high-tax state, there’s no arguing otherwise. We find ourselves ranked with the likes of New York and California. Instead of pushing for tax relief to help families, Democrats have doubled down and find new ways to spend away taxpayer money. And as soon as a surplus is available, they spend it before it’s even in-hand. Facing another surplus, it’s clear our tax structure needs a total overhaul. Minnesotans have been asking for tax relief, and that’s what we should be focusing on. And I can promise you that tax relief doesn’t start with implementing costly programs.

Considering that this study found the Democrats’ Paid Family Leave Program to be so excessive, it begs the question: how much will all their other new mandates and programs cost Minnesotans in the long run? They didn’t have their numbers right with this one, and we still don’t know what the final product will look like. In the face of yet another surplus, we need to focus on tax relief, not raising taxes for Democrats’ pet projects.

https://strgnfibcom.blob.core.windows.net/nfibcom/Actuarial-Analysis-of-Minnesota-PFML-Program-10-27-23-1.pdf