Lieske: Watch out for more possible tax increases coming your way

Friends and neighbors,

Tax season is behind us, but the push for higher taxes at the Minnesota Capitol is not.

Let’s walk down memory lane first. In 2023, Minnesota had an $18 billion budget surplus. Democrats controlled the governor's office and both chambers of the Legislature. During the 2022 campaign, many Democrats, including legislative leaders and the governor, indicated they would use the surplus to provide relief. But that’s not what they did. Instead, they spent it. State spending jumped by 40% in a matter of months, and on top of that, Democrats raised taxes by more than $10 billion.

It is incredibly expensive to live in Minnesota, and the choices made by leaders during the 2023-2024 session are a big reason why.

As it turns out, the taxes they raised in 2023 and 2024 weren’t enough. This year, Democrats in the Legislature have introduced a long list of new proposals to raise taxes and fees. Some examples: a statewide property tax on homes, new taxes on advertising, social media, plastic bottles. They propose expanding sales taxes, raising the corporate income tax, creating a new tax bracket, and more. Some of these would hit you directly. Others would get passed along through higher prices or reduced services. Either way, you will definitely feel them.

The two things I hear about most from constituents are the cost of living and fraud. Those remain my priorities, particularly as we enter the final stretch of this year’s session.

My Senate GOP colleagues and I have proposed a number of ideas to make life a little more affordable. For example, we propose reversing the tab fee increases Democrats passed in 2023. Minnesota has the highest tab fees in the region, and this is one of the hottest issues I’m hearing about these days. Undoing the 2023 increases will put us more in line with our neighbors. It’s a good first step. We also propose capping property tax growth, and reducing unfunded mandates on local governments and schools in order to keep local property taxes in check.

Minnesota’s high cost of living will not be fixed overnight, but we can certainly make progress.

One tax I'm proud to support: a 100% tax on money obtained through fraud against state programs. If a person defrauded Minnesota taxpayers, they will owe every dollar back to us, on top of any other penalties. Revenue goes directly into a relief account for income and property tax relief. I am often asked how we are going to get back the money that was stolen. This is how.

The contrast this session is straightforward. One side has spent the year looking for new things to tax. The other has spent it looking for ways to make Minnesota more affordable.

I will continue to work on ways to make your life a little bit more affordable. Keep an eye on these issues as we enter the final weeks of session, and if you have any questions please do not hesitate to ask.

Sincerely,

Senator Bill Lieske