FOR IMMEDIATE RELEASE: March 21, 2014 MEDIA CONTACT: Katie Fulkerson, 651-296-5133

Tax Adjustments Net Positive for Minnesota, but $1.7 Billion Tax Increase Still Stands
Republicans disappointed by lost opportunity, call for swift action to address shortfalls. (St. Paul, MN) The Minnesota State Senate passed a tax bill this afternoon that includes some immediate relief for overtaxed Minnesotans, but still results in a net $1.7 billion tax increase for the biennium. Many of the provisions in the bill mirror those found in the Republican Families First plan, but falls short of addressing all of the mistakes of the previous session. Republicans point out that the net result of these tax adjustments is still a $1.7 billion tax increase for the two-year budget cycle, which is money that will be taken from Minnesota families and used to fund government programs that are often wasteful and extravagant. Sen. David Hann elaborated, Repealing the harmful taxes passed last year has been a priority for Republicans from day one, and Im pleased to see it finally moving forward. This was a first step to end the uncertainty Minnesotans are feeling about the looming tax filing deadline. However, there are some major concerns that we hope to see addressed in a second bill. The tax relief in this bill only accounts for a third of the $1.2 billion surplus, and if passed, would still overtax Minnesotans by $655 million. If we dont prevent state government from collecting this money from taxpayers, I fear

Democrats will continue to grow government spending at the same irresponsible 10% pace as last year. The surplus should not be an excuse to spend even more. Every dollar collected from taxpayers is a dollar that isnt circulating in our economy, creating jobs, and creating surpluses in family budgets. Republicans questioned other troubling items in the bill, including a capital equipment shift and gimmick resulting in a $64 million tax increase, and a Location Equity Revenue provision resulting in a $52 million property tax increase. The latter allows school boards to levy up to $724 per pupil in new property taxes, without asking voters. Republicans would have done more to put Families First by: Retroactively applying the fix to the marriage penalty that robs over 600,000+ married filers of substantial 2013 tax savings. Retroactively repealing the Democrats business-to-business taxes that increase prices on everyday purchases. Including a half-percent sales tax reduction to give Minnesotans a surplus in their household budgets. Fund a $200 million transportation package to repair and maintain roads and bridges with spending efficiencies promised by the Department of Transportation in 2008. ###