Minnesota Senator Calvin Bahr banner image
 

03.19.24

10 Billion Dollars In New Taxes 

Just recently, Minnesotans fulfilled their tax obligations, facing nearly $10 billion in tax hikes that have only just begun to take effect, with more already in the pipeline. It's crucial to alert Minnesotans to additional tax hikes proposed by Democrats to fuel further spending. The Democratic Majority pushed through nearly $10 billion in tax increases for 2024 and 2025. Presently, approximately $3 billion in new taxes and fees have been implemented, with over $6 billion slated to commence in 2026. Anticipate a plethora of new tax proposals from Democrats next year, especially given the looming budget deficit.

 

For too long, Democrats in St. Paul have treated the paychecks and bank accounts of Minnesotans as their personal piggy bank to tap into whenever they require more funds to support their excessive spending. Minnesotans cannot thrive when such a substantial portion of their earnings are siphoned off by politicians in St. Paul. This cycle of destructive spending must cease.

 

Firstly, there's a looming $2 billion payroll tax hike set to kick in by 2026 to fund the bloated bureaucracy of the Democrat’s Paid Leave plan. This program necessitates a tax increase on both employers and employees, even though it has yet to commence. Furthermore, this payroll tax will burden taxpayers again as schools, cities, and counties comply with the mandate, inevitably leading to increased costs for local governments, ultimately funded by local taxpayers.

 

Additionally, changes to the net operating loss tax deduction will result in a tax increase for businesses and entrepreneurs who experienced financial losses in the year. Democrats are levying taxes on small businesses and entrepreneurs who, sometimes through no fault of their own, faced a challenging year. Limiting the deduction means more funds for the government and fewer resources for these job creators to hire, expand, and recover from their losses.

 

One of the most contentious tax hikes by Democrats was linking Minnesota’s gas tax to inflation rates. This effectively puts the gas tax on autopilot for increases without requiring legislative approval. Automating the gas tax increase perpetually drives Minnesotans and businesses away from the state due to this reckless taxing and spending spree. It's utterly irresponsible to mandate tax increases annually, even after exhausting the entire $17.5 billion surplus and implementing an additional $10 billion in taxes.

 

Furthermore, Democrats are proposing a statewide sales tax increase for housing via a constitutional amendment. The proposal seeks to increase the sales tax by three-eighths of 1% to establish three dedicated funds for homebuyers, renters, and homelessness. If ratified, a 24-member council would be appointed by the legislature to manage these funds. This housing tax not only constitutes a tax hike but also entails a significant expansion of bureaucracy. Taxing Minnesotans to facilitate housing will harm those it's meant to assist, making homes more expensive without alleviating rent costs. Instead, this regressive tax hike drains money from every Minnesotan, exacerbating the challenge of affording rent, mortgage payments, or saving for a home down payment.

 

New Elections Omnibus Bill Passes. Election Integrity Is At Risk. 

On Thursday, April 18th, the Minnesota Senate passed a partisan elections policy bill hat adds costly burdens to local governments, reduces community representation in local elections, and fails to deliver integrity and transparency to Minnesota’s elections. Among the more concerning changes in the bill is a change that allows school boards to fill vacancies with an appointment for as long as two years. This change prevents voters from choosing their elected school board representatives and significantly reduces public input in the electoral process. 

 

The legislation also changes the voter registration process for homeless Minnesotans. If enacted, they can simply mark a place on a map where they generally reside and cast their vote for that precinct without any accountability or verification process. Currently, any voter who registers before election day must verify their physical address.  

 

The Democrats’ partisan elections bill fails to honor Minnesota’s long tradition of bipartisan election law changes, We should be passing election policies that benefit all Minnesota voters, not just benefit one side of the aisle. Unfortunately, this bill does nothing to increase transparency or integrity of Minnesota elections.

 

Other concerning provisions of the elections policy bill include: 

1. Requiring any county or municipality that administers elections to transition to a ‘.gov’ website. 

2. Making complex campaign finance changes that are hard to enforce, difficult to understand, and risk limiting public engagement in elections.

 

Senate Republicans offered several amendments to protect the integrity of election results and increase participation. Among them was an amendment I offered to require municipal and school board elections be held in general election years to increase voter participation. This change would apply to all Minnesota schools and cities, other than the first class.

 

We want as much voter participation as possible, and this amendment sought to increase voter turnout for our municipal and school board elections. By changing the election dates of our schools and cities to even years, we would align with the General Election when voter turnout is much greater. If we reduce the need for poll watching staff on odd years and regulate those workers to even year elections, we can reduce the need for staff on later election days. This would save taxpayers from additional costs.

 

Additionally, an amendment was offered to establish provisional ballots for Minnesota voters who register on Election Day. Provisional ballots are used in 47 other states to ensure voters who register on Election Day are validated the same way as a voter who registers prior to the election, and before counting their vote in the final election results. 

 

Other amendments offered by Senate Republicans include: 

  • Prohibiting political parties from collecting or soliciting financial contributions during the legislative session to prevent special interests from buying influence.
  • Preventing non-governmental groups from paying for election-related expenses through so-called, “Zuckerbucks” to keep elections free of outside influence. 
  • Banning political spending by organizations that receive state funding to ensure tax dollars are being spent responsibly and not used in a pay-to-play scheme.  

 

The amendments were defeated along party lines. To see my amendment, click the video below. 

 

LCCMR Survey

The Legislative-Citizen Commission on Minnesota Resources (LCCMR) needs your help in determining priorities for spending from the state’s lottery- generated Environment and Natural Resources Trust Fund (ENRTF) for the next six years. Currently, the ENRTF provides $80-90 million per year for environmental, natural resources, and outdoor recreation projects across Minnesota.

 

What issues are most important to you? Make your voice heard by taking this survey now!

 

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Please don’t hesitate to contact me for help with any state issue or legislative initiative: [email protected] or at (651) 296-3219.

Senator Calvin Bahr

Minnesota Senate, District 31

 

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