I am pleased to share the news that the House and Senate finally came to an agreement late last week to stop our job providers from facing a massive, multi-year tax increase. The Senate acted back in February to stop this increase by passing a bipartisan bill to replenish and refund the unemployment insurance (UI) trust fund, with support of both Republicans and Democrats for that legislation. The Governor, Senate Republicans, Senate Democrats, and House Republicans all supported the UI bill, but House Democrats held our businesses hostage and missed the original March 15 deadline that had been set by the Walz administration.
While it took far too long to pass the UI bill, I am glad that our job providers will not be faced with a new tax burden. Government forced employers to close their storefronts and send their workers home during the pandemic. Now, they are facing immense pressure under soaring inflation, a supply chain crisis, and workforce challenges. I am pleased that the legislature and Governor were able to work together on this issue to support Minnesota’s job providers during these difficult times.
If you or someone you know is an employer and are unsure what this change means for UI taxes, I encourage you to visit this new webpage created by DEED to assist with any questions you may have: https://mn.gov/uimn/employers/employer-account/news-updates/tax-changes-affect-you.jsp.
We have been spending long hours on the House floor debating all the omnibus bills. From now through the end of session, I will be fighting for permanent, meaningful tax reform and relief. Our families and businesses need it now more than ever. The rising cost of living is creeping into every part of Minnesotans’ lives – from higher prices at the gas pump to empty shelves at the grocery store. It is time to reinvigorate our state and the best way to do that that is through tax relief.
Unfortunately, House Democrats continue to push for $21 in new spending for every $1 in tax cuts within their omnibus bills. It is time we stop growing the size of our government. I hope before the end of session we can finally pass some much-needed permanent tax relief.