Chronic overcollection of tax revenue should result in meaningful tax relief
ST. PAUL, MN., June 22, 2022—Minnesota’s leading small-business association today called for using the state’s $9 billion budget surplus on permanent tax relief instead of one-time rebate checks.
“The historic state budget surplus should result in permanent, meaningful tax relief for small businesses,” said John Reynolds, Minnesota state director for the National Federation of Independent Business (NFIB), the nation’s leading small-business association that has more than 10,000 members in Minnesota. “Permanent relief from chronically high taxes will help Main Street and hardworking families endure increasingly difficult economic conditions.”
Gov. Tim Walz is proposing to use half of the budget surplus for one-time rebates. Similar proposals were rejected by the Minnesota Legislature earlier this year.
Small employers are facing painful economic headwinds – record inflation, skyrocketing energy costs, labor shortages, supply chain disruptions – and many have not fully recovered from the COVID-19 pandemic.
According to the most recent NFIB small business data:
- The NFIB Optimism Index fell 0.1 points in May to 93.1, the lowest point in the 48-year history of the survey.
- Small businesses expecting better business conditions over the next six months decreased four points to a net negative 54%.
- 51% reported job openings that could not be filled, up four points from April.
- 92% report that supply chain disruptions are impacting their business.
“Minnesota’s General Fund spending has increased by nearly 50% in the last 10 years, while our key tax rates have remained among the highest in the country,” added Reynolds. “With a $12 billion surplus in the next biennium, now is the time to give small businesses and hardworking families the permanent relief they need.”
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