Comparing state budget proposals
On Tuesday morning, tax proposals from Governor Tim Walz will get a hearing in the Senate Taxes Committee. However, even if they pass that committee with a DFL majority, they’re unlikely to pass the tied Minnesota House, where Republicans will have a say.
The governor proposes a dependent care tax credit for families with young children, creating a new tax on social media companies and lowering the state sales tax by three-quarters of a cent, but expanding it to apply to financial planners, lawyers and some other services.
“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 [for things like lawyers and financial planning] and the folks at the bottom can see a reduction in the sales tax,” Walz said when making the proposal last month.
Republicans have very different ideas for a tax bill. They propose lowering license tab fees, eliminating state taxes on tips and overtime to conform with federal law and property tax relief.
“So far, when given the opportunity to make progress for Minnesota families, Democrats have chosen obstruction over action time and time again,” says Rep. Harry Niska, the Republican House floor leader, when his caucus released their tax proposals last week.
Democrats deny obstructing tax legislation. “We are absolutely open to these conversations, but how are you going to pay for it?” asked Rep. Zack Stephenson, the House DFL leader.
