Senate Republicans held a press conference yesterday on Tax Day to spotlight how DFL tax increases and unchecked spending have driven up costs and made life less affordable for Minnesota families.
Under DFL control, the state budget has ballooned, devouring an $18 billion surplus while imposing $10 billion in new taxes — yet that still wasn’t enough to prevent future deficits. The Tax Foundation ranked Minnesota two places lower this year on its State Tax Competitiveness Index (from 42nd to 44th) keeping the state in the bottom 10 for another year. Data from the National Association of State Budget Officers and the U.S. Census Bureau shows state spending has risen 48% while population has grown by only 6%.
“Minnesotans are watching state spending climb while their own paychecks stay the same – it’s frustrating to say the least,” said Senator Karin Housley (R-Stillwater). “Families are being stretched thinner every year, and they’re not seeing life get any easier. Living in Minnesota isn’t cheap, and it’s only getting tougher. When the budget has nearly doubled in the last decade, it’s time to step back, reassess, and start listening to the families making it all possible.”
Democrats have proposed new taxes on social media companies and advertising services, extending the sales tax to financial advice, creating a fifth tier of income taxes, imposing a new statewide property tax, and advancing a constitutional amendment to raise sales taxes for housing.
That refers to comments made in committee by DFL Rep. Meg Luger-Nikolai, who said she may offer an amendment to quintuple tab fee rates to raise more revenue. On the House floor, DFL Transportation Finance Committee Co-Chair Rep. Brad Tabke suggested Minnesota’s tab fees were among the lowest in the region, a claim that is demonstrably false.
“In no world should tab fees cost more than a car payment, yet that’s the reality for many drivers across our state,” Housley continued. “This funding was supposed to improve our roads and bridges, but due to mandates passed by Democrats in recent years, costs have become so high that the money just isn’t going as far as it should. Drivers are paying more and not seeing the results. It’s time to fix that by cutting unnecessary mandates and lowering costs – it just makes sense.”
In addition to tab fees, Republicans blame DFL spending and regulations for driving up property taxes across the state. Despite concerns from local leaders, Democrats introduced a bill to add a new state property tax segment that could cost some homeowners thousands of dollars each year on top of their local property taxes.
In contrast, federal tax changes are delivering some of the largest refunds in years, up nearly 11% and averaging about $3,500 nationally, with nearly half of all filers using new deductions. Additionally, 25% of filers have taken home more of their pay by deducting taxes on tips and overtime. Yet Democrats in Minnesota remain opposed to reducing taxes on tipped and overtime wages, despite bipartisan support during the 2024 presidential campaign.
Earlier this Session, Sen. Housley also introduced legislation that would bring Minnesota into conformity with federal tax code. The bills would end taxes on tips and overtime for workers. Both policies have broad bipartisan support and allow service industry and hourly workers to keep more of their hard-earned money.
“Minnesotans want life to be affordable – it’s really that simple,” Housley said. “They’re not asking for anything complicated. They want to live here, raise a family, and run a business without being taxed at every turn. We’re here to represent their interests, but for too long, they’ve felt ignored. It’s time for government to start listening to the people it’s elected to represent.”