Gov. Tim Walz has unveiled a supplemental budget proposal focused on middle-class families in Minnesota.
The proposal includes expanding dependent care tax credits for families with young children and allocating $100 million to provide emergency aid to first-time homeowners and renters.
The plan suggests lowering the state sales tax by three-quarters of a cent while expanding it to include services like financial planners, bankers and lawyers.
“There’s no reason the sales tax can’t be expanded to broader numbers so that people who are at the top can pay a little bit on that and the folks at the bottom can see a reduction in the sales tax,” said Walz.
Senate Minority Leader Mark Johnson expressed opposition to tax increases, saying, “When we’re talking about affordability as Republicans in the Senate and the House and talking about how can we help Minnesotans afford their life [and] Democrats are again talking about, ‘Hey, how can we tax Minnesotans more?’”
The proposal includes financial assistance for those affected by “Operation Metro Surge” and increased funding for fraud prevention, a top legislative priority.
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“The fraud savings identified in the Governor’s budget prove what Republicans have been saying for years — fighting fraud will save Minnesotans billions in the long run,” said House Speaker Lisa Demuth. “House Republicans will work with anyone to make these savings a reality, and use the money to invest back in Minnesota workers through commonsense tax relief, including no tax on tips, no tax on overtime, and reducing sky-high car tab fees.”
However, the proposal cuts funding for nursing homes and programs for people with disabilities.
“We are at the very top in expenditure. We are at the top in these services. That will continue to be there, but we’re looking toward long-term sustainability in the future,” said Walz.
Johnson criticized the cuts, saying, “By going after the most vulnerable people in the state and by going after our counties again, it’s the wrong approach. The wrong time to be doing that.”
The governor’s proposal also introduces a social media tax on tech companies with over 100,000 monthly users in Minnesota.
The full press conference with Walz is available to watch below.
