NFIB, or the National Federation of Independent Business today announced its statewide issue campaign to Stop St. Paul’s Billion Dollar Tax Hike on Small Businesses. This new $1 billion payroll tax on small businesses and workers comes in the form of a massive new government-run, 24-week paid leave mandate.
This week, NFIB is launching a statewide radio ad campaign to educate Minnesotans about this harmful proposal. You can listen to the radio ad here.
“The last thing Main Street businesses need right now are expensive new labor mandates that come with a billion-dollar payroll tax,” said NFIB State Director in Minnesota, John Reynolds. “For three years, small businesses have weathered the pandemic, record inflation, worker shortages and more. Reckless policies from politicians in St. Paul might be the final straw.”
Minnesota has a $17.6 billion surplus, so why are politicians pushing another burden on the shoulders of small business and workers? The new $1 billion payroll tax will make life even hard on Main Street: the average small business with 10 employees will face a $3,000 per year tax hike – and that’s just to start.
Here’s what you need to know about this scheme:
- $1 Billion Payroll Tax on small businesses, family farms and more.
- As the cost of the new government-run program grows, so will the payroll tax! Another state’s paycheck tax doubled in just three years.
- Mandates that small businesses allow all employees to take almost 6 months off per year for a wide range of circumstances.
- Sets up a massive new bureaucracy with 300-400 government employees and a $50 million annual budget.
- Upends the salary and benefit arrangement for every small business employee, making it harder for them to offer customized compensation plans to attract new employees.
On top of the $1 Billion Paycheck Tax, politicians expect Main Street to eat the cost of lost sales and lower productivity from government-mandated leave.
Add it all up and Minnesota small businesses just can’t afford this right now.
David Henrich is a small business owner. Thermal Dynamics, based out of Maple Plain is a water systems company that designs geothermal technology.
Heinrich questions why politicians are pushing another burden on the backs of small business owners when Minnesota has a $17.6 billion surplus. The new $1 billion payroll tax will make life even hard on Main Street: the average small business with 10 employees will face a $3,000 per year tax hike in the first year – and the tax will grow every year.
“No small business can go without their skilled employees for six months. We need to shorten the horizon of this program and minimize the costs, particularly the immediate costs it would place on both employers and employees alike,” said Henrich. You can watch more about the paid leave mandate and Henrich’s testimony here.
Main Street businesses work hard to take care of their employees and their communities. The last thing they need is new taxes and politicians micromanaging their shop.
To find out more about the proposal, click here.
NFIB is the nation’s leading small business advocacy organization. To learn more about NFIB in Minnesota and how to Stop St. Paul’s Billion Dollar Tax Hike on Small Business, visit www.NFIB.com/MinnesotaTaxHike.
