Governor Tim Walz as expected is proposing an income tax increase on the wealthiest Minnesotans — households with incomes over a million dollars — and on what he terms “large, profitable companies”:
“A million Minnesota families will see cuts to their income tax. We’re gonna ask the top point-seven percent to pay a little bit more. So one percent (tax increase) on the one percent (highest income) is about what we’re looking at.”
Walz is calling for 1.3 billion dollars in what he calls “new investments” — including a 3.5 percent increase in funding for K-12 education over two years, 50 million dollars in forgivable loans to struggling businesses, and expanding the Working Family Tax Credit for over 300-thousand households.
Senate Republican Majority Leader Paul Gazelka is repeating, “we are not balancing the budget with tax increases.” Gazelka says the state’s “rainy day” budget reserve can be used to protect people from hurtful tax increases that will further stretch their family budgets and harm Minnesota’s economy.