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%.
“Tax policies are pushing Minnesotans out the door,” said Senator Jeff Howe (R-Rockville). “And they are hurting everyone – from high property taxes forcing seniors out of their homes to young professionals who are seeing greener pastures in other states, we are losing people left and right. Make no mistake, this is a direct result of the burdensome taxes Democrats continue to pile on families and businesses in our state.”
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.
“One of the top concerns I hear the most is that folks are tired of out-of-control tab fees,” continued Howe. “Some drivers are paying more than the cost of a car payment – that is ridiculous, and it isn’t sustainable. Usually when people are paying more, they expect to see a direct increase in quality somewhere. These fees are meant to improve roads and bridges, but because of burdensome greenhouse gas emissions changes made by Democrats, the cost for road repairs has doubled, and they aren’t getting done. So everyone pays more, but our roads don’t get any better.”
In addition to tab fees, Republicans blame DFL for shifts to local government, uncontrolled 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.
“Minnesotans are tired of paying more and not seeing an increased quality in life. The fact is our budget has doubled in the last ten years, while population growth has been minimal. We are on an unsustainable path, and unless we correct course, people will continue to leave Minnesota,” finished Howe.