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Tax Increases and Government Mandates Hurt Opportunity

Apr 23, 2019 by AFP

ST. PAUL, MN – Americans for Prosperity – Minnesota (AFP-MN) today urged House members to reject HF2208, the Omnibus Jobs and Economic Development Finance Bill. The legislation would create a new entitlement program funded by a payroll tax on all employees and employers across the state, while also imposing a 100% carbon-free mandate.

View the key vote letter to lawmakers here.

“Government mandates, tax increases, and more regulations is not the path to providing more opportunity for Minnesotans. This bill saddles small businesses with burdensome regulations that impose flawed one-size-fits-all policies where innovation and choice should be the answer,” said Jason Flohrs, AFP-MN State Director. “Hiking energy bills even more and raising taxes on families, workers, and businesses sets our state back from achieving our full potential. If legislators want to grow Minnesota jobs and the economy, they should work to roll back onerous and unproductive government mandates and restore fiscal sanity to our state’s budget and tax code.”

Background:

AFP-MN Urges House to Oppose Unrealistic, Unaffordable Carbon-Free Mandate (3/28/19)

Energy Proposal Drives Up Costs for Minnesota Families, Stifles Innovation and Opportunity (3/4/19)

New Entitlement Program Hits Low-Income Workers with 12% Tax Increase, Limits Flexibility for Minnesota Job Providers and Employees (1/30/19)

The new entitlement program will cost about $450 million in 2021, its first year, and $900 million annually once fully implemented. The program would also require an additional 352 state workers to administer.

Minnesotans are already paying over $1 billion a year more for electricity per year than if the state had maintained its historic price advantage. Higher energy prices in combination with the onslaught of proposed new tax hikes within the Governor’s budget will spell disaster for Minnesota’s economy.

Americans for Prosperity-Minnesota re-launched the Roadmap to Prosperity at the beginning of this legislative session that serves as a framework for lawmakers when analyzing policy proposals and legislation. The Roadmap focuses on restoring fiscal stability, igniting the Minnesota economy, focusing on sound investment for our future, helping expand the American Dream for future generations, and protecting taxpayers from out of control spending and over-regulation.

AFP-MN has also urged lawmakers to reject the governor’s proposed regressive tax increases that would hit hardest the families that are already struggling to make ends meet.