Senate Republicans held a press conference 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 just 6%.
“Minnesotans should not forget that Democrats spent the entire $18 billion surplus and raised taxes by $10 billion in the same year,” Senate Republican Leader Mark Johnson (East Grand Forks) said. “This has led to projected deficits and an unsustainable spending spree, yet Democrats continue to support tax increases at a time when Minnesotans desperately need relief from the high cost of living.”
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.
In addition to sales and income taxes, Democrats in St. Paul made drastic changes to the cost of owning a car. “Drivers are shocked to learn their tab fees were recalculated and can cost more than their car payment,” Johnson said. “For the average new car, the tabs fees will cost more than $3,500 over five years, significantly higher than $465 cost in North Dakota. And for some reason, they are threatening to increase them even more.”
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.
Republicans also discussed higher property taxes across the state. “The counties in our district have done well to manage their budgets, but unfunded mandates and regulations from St. Paul put unbearable pressure on city and county budgets. The property tax increases they are proposing are a direct result of runaway spending at the Capitol, and you are now footing the bill,” Johnson commented.
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.
“The simple reality is that it is too taxing to live in Minnesota, and Democratic spending is making life less affordable,” Johnson added. “Rather than reducing our budget growth, supporting families and workers with tax cuts, and prioritizing core services, Democrats are dedicated to finding more revenue and pinching the budgets and pockets of every Minnesotan as though every day is Tax Day.”
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Graphics:
Driving up costs: 5-year tab fee totals
Living in Minnesota is taxing: 2026 state competitiveness rankings
Living in Minnesota is taxing: State budget growth vs. population growth
Photos:
Sen. Johnson speaks at a Tax Day press conference to highlight the Minnesota’s high taxes driving up the cost of living.
