It’s expected Governor Walz in his state budget proposal tomorrow will ask lawmakers to increase upper-bracket income taxes in Minnesota, setting up another big battle with Republicans. Democratic leaders of the Minnesota House, who support the governor on the issue of upper-bracket tax increases, contend there are some who have actually done better during the pandemic and are not paying their fair share. Majority Leader Ryan Winkler says, “We do know that there are Minnesotans in great need, and that the pandemic has hurt some people much more than others.”
Senate Republican Majority Leader Paul Gazelka says tax hikes are not necessary to plug an expected budget shortfall. “We can reduce spending — it doesn’t have to be much — and we can use the Rainy Day Funds…. Between those two things we can easily balance the budget,” he says. But Gazelka says no tax increases — either income, sales or gas tax.