2023 Small Business Issues at the Minnesota Capitol

November 29, 2022 Last Edit: June 5, 2025

2023 Small Business Issues at the Minnesota Capitol

When the Minnesota Legislature reconvenes on January 3, 2023, state government will be under one-party control for the first time since 2014. Progressive politicians have promised a slew of onerous new taxes and regulations on businesses. NFIB will be at the Minnesota Capitol to fight back against higher costs and mandates, and defend your right to own, operate and grow your business on your own terms. Amplifying the Voice of Small Business in Minnesota is more important than ever. Here are some issues we’ll be watching throughout the legislative session: $10 Billion State Budget Surplus/Small Business Tax Cuts. Since the early stages of the pandemic, state tax revenue collections have exceeded projections. As a result, Minnesota has the largest expected budget surplus in state history: roughly $10 billion in revenue above expenses in the 2024-25 budget cycle. With this type of surplus, tax increases should be completely off the table. But proposals to increase individual and corporate income taxes persist. Meanwhile, our neighbors continue to decrease their tax rates – leaving Minnesota even more of a high tax outlier. NFIB will fight for small business tax cuts and against any attempt to make small businesses pay even more of their hard-earned money into bloated state coffers. Employer Paid Leave Mandates. There are two prominent paid leave mandates on the table: 1) a requirement that employers pay one hour of sick leave for every 30 hours worked, up to six paid sick days per year; and 2) a new government-run paid family and medical leave (PFML) program that will cost roughly $1 billion per year and allow employees to take up to 24 weeks off per year. The $1 billion cost is paid for by a new payroll tax on employers and employees. Neither program comes with a small business exception. They would apply to most types of employees from the beginning or very early stages of employment. NFIB strongly opposes both proposals, which are one-size-fits-all mandates that won’t work on Main Street. Small businesses are unique arrangements and what works for a bog box store won’t necessarily work for small employers. Energy Mandates/Electric Vehicle Subsidies: In recent years, progressives in the Minnesota House aggressively pushed carbon free electricity and greenhouse gas (GHG) reduction mandates in recent years. They will likely try to impose a deadline of 2030 or 2040 for 100% carbon free electricity generation, a rigid statewide GHG reduction standard, and electric vehicle subsidy packages. Small businesses and Minnesota families depend on reliable, affordable energy to succeed and grow. We cannot follow the disastrous path set by states like California and Washington, and we cannot afford to have California blackouts in the middle of Minnesota winters. NFIB will oppose reckless and expensive energy mandates at every turn. Revise Minnesota’s Emergency Powers Law. We will reintroduce NFIB-crafted legislation to bring more balance to the Emergency Powers law. This proposal would require advance disclosure of executive action during a peacetime emergency and terminate any emergency order after 30 days unless continued by a majority vote of the entire Legislature. Reforming this outdated and imbalanced law has attracted bipartisan support following its use during the COVID-19 pandemic. Government-Run Healthcare Programs. Since the enactment of the Affordable Care Act, progressive lawmakers have set their sights on further government intrusion into private healthcare. Public Option and Single Payer programs have been proposed at the federal and state level, with a Public Option bill advancing through the Minnesota House last year. NFIB will work to protect private healthcare coverage for small businesses and work to make healthcare more flexible and affordable. We will oppose every effort to create heavy-handed government programs that limit options and increase costs for private payers.

Topics:

Taxes

State:

Minnesota

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