House should stop blocking tax relief for businesses and unemployed workers
Tax season is upon us, but small businesses and folks who needed pandemic unemployment insurance are suddenly facing big surprise tax bills. The federal government exempted this emergency Covid assistance from taxes, but Gov. Walz and the House have resisted efforts to exempt them from state taxes as well.
The Senate approved a bipartisan bill to protect these businesses and workers from big tax increases, but Democrats in the House disappointingly blocked it.
We’ve got to get this done. These businesses and workers played by the rules and did everything they could to survive the pandemic and Gov. Walz’s business closures. They have endured hard enough times. With our state budget picture in such good shape, we have an easy opportunity to help these businesses and workers get some relief.
Our bill contained two main components:
- It protects businesses by exempting federal Paycheck Protection Program (PPP) Loans from state taxes. These emergency loans, issued by the federal government last year to help businesses struggling to survive the Covid-19 pandemic, are not subject to federal taxes; the Senate bill would conform Minnesota tax laws to federal rules.
- It allows Minnesotans who collected additional Covid unemployment benefits from the federal government to subtract a portion of those benefits on their income taxes this year. Many individuals were surprised with hefty tax bills because the state did not withhold taxes on those payments.
Now it’s up to the House and Gov. Walz. I encourage everyone to contact the governor and Speaker Melissa Hortman and ask them to take up this urgent tax relief. They shouldn’t be playing politics with these folks’ livelihoods.
A more collaborative approach to future emergencies
One of the most popular issues I hear about from constituents is Gov. Walz’s emergency orders. Folks are rightfully frustrated by the governor’s go-it-alone approach and want the governor and the legislature to work together on the state’s response. I agree.
On several occasions, including as recently as March 18, the Senate has voted to end the emergency powers. Unfortunately, that will never happen as long as Democrats control the House of Representatives. That is because current law allows the governor to extend a peacetime emergency indefinitely for 30 days at a time, and only grants the legislature the option to cancel emergency powers if both the House and Senate vote to do so.
We’ll keep trying, but we are also taking steps to avoid this situation in the future. The Senate recently passed legislation that would reassert a fair balance of governing power between the legislative branch and the executive branch during future states of emergency. The bill would require the governor to obtain legislative approval to extend any emergency declaration beyond 30 days. It received support from Republicans, Democrats, and independents.
Government functions best when everyone works together. Throughout the course of the pandemic, Gov. Walz has made decision after decision entirely on his own, without working with the legislature. Business closures. School closures. Restrictions on what you can do in your own home. Pandemic or not, these decisions are far too important to be made by only one person. The legislature, regardless of party, must have a seat at the table if we are ever in this situation in the future.
If you have any questions about these bills or any other issue the legislature is working on, feel free to contact me any time at sen.john.jasinski@senate.mn or 651-296-0284. It is a privilege to serve you!