Last Friday, Minnesota Management and Budget (MMB) released their February economic forecast, showing a projected $1.6 billion surplus for the next biennium, up from a more than $1 billion deficit projected in our last forecast.
In spite of this large surplus, Democrats continue to push for massive tax hikes on Minnesotans at all income levels. A large portion of the Governor’s proposed tax hikes land squarely on those who can least afford it, with many being some of the most regressive taxes we have, according to the Minnesota Department of Revenue.
Even with all the massive tax and spending increases in the budget proposals being heard by House Democrats, the proposals leave out full federal conformity for PPP loan forgiveness, even though both the Democrat Tax Chair and the governor have signaled that they support it. We are currently the only state in the upper Midwest that has not exempted forgiven PPP loans from taxes. The bill for full federal conformity is sitting in the Tax Committee currently, and has not yet been voted on even with tax deadlines fast approaching.
Minnesota’s families and small businesses have struggled this past year, and now is not the time to force an even higher tax bill on them. It is time to abandon the push for tax hikes and pass federal conformity for forgiven PPP loans so that our economy can continue its recovery.
As always, please do not hesitate to contact me if I can be of assistance to you or your family on a matter of state government. I can be reached by phone at 651-296-4346 or by email at firstname.lastname@example.org.
Have a great week.
Rep Brian Johnson
243 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155