Top Republicans want businesses to *not* have to pay state income taxes on forgivable loans they received under the federal COVID Paycheck Protection Program. Senate Majority Leader Paul Gazelka:

“If Minnesota does nothing, we will be taxing that, and that creates a real burden on some of these small businesses that had to struggle through the shutdowns.”

House Tax Committee Chair, Dilworth Democrat Paul Marquart agrees, but says the legislature also must help employees:

“Workers who lost their jobs need to pay taxes on their unemployment insurance benefits, and we need to look at a way to also forgive those taxes on those U-I benefits.”

Marquart says the price tag to assist employees as well as businesses is just under one billion dollars.   The state has a forecast 1.6-billion-dollar budget surplus, but many interests are competing for that money.