The latest state economic forecast that shows a shrinking budget surplus and a looming slowdown has further hardened Republicans’ resolve to fight any tax increases Governor Tim Walz is proposing. Senate Majority Leader Paul Gazelka says, “My first job is to make sure we could live within our resources without raising taxes. That means that we have to figure out how to slow the growth of spending.” Governor Walz warns if Minnesota does what Republicans want, “We will blow billion-dollar holes in our budget, and the very investments that will allow us to grow in an economic slowdown will be taken away.”
Walz is proposing a gas tax increase and significantly more state funding for education. He also wants to continue the health care provider tax and allow people regardless of income to get health coverage through state-run MinnesotaCare. But the governor says, “There is one tool in the Republican toolbox: cut taxes, cut taxes, cut taxes…. We are cutting taxes for working Americans, for the working Minnesotans that are in the middle, but we’re making strategic investments that grow the economy.” House Republican Minority Leader Kurt Daudt responds, “What the governor’s doing is wanting to put three billion dollars of new taxes on top of Minnesotans who are already some of the highest taxed people in the country.”