Good morning, and congratulations for making it to Friday after another long week.
On the radio today at noon: I’ll be talking to Reps. Frank Hornstein and John Petersburg about the transportation budget, and later with Rep. Jess Hanson about the legislation that would legalize marijuana in Minnesota. Tune in on the radio, listen online or subscribe to the Politics Friday podcast.
And on the marijuana bill, days after the Minnesota House passed it, the state Senate is set to debate its version later today. As MPR reports the Senate bill has already been discussed in more than a dozen committees. Unlike past years when a Republican majority blocked consideration of a legalization bill, DFLers control the Senate along with the House and governor’s office. Public opinion polls have shown a majority of Minnesotans support legalization, despite concerns raised by opponents about traffic safety, addiction and other health consequences of marijuana use. Supporters say many Minnesotans are already using marijuana and that creating a legal market would ensure the product is unadulterated and squeeze the black market in favor of legitimate businesses. Sen. Nick Frentz, DFL-North Mankato, said the committee review process means the bill is the product of extensive discussion, and was changed after getting input from supporters and opponents. "I'm not aware of another bill in the Senate that's come forward so far that's had more committee stops, more Minnesotans weighing in more input backwards and forwards."
A proposed corporate tax that’s central to the budget the Legislature is adopting is surrounded by questions over its viability, with even the Department of Revenue acknowledging risk about the money materializing. MPR’s Brian Bakst reports a measure that’s known as worldwide combined reporting is part of House and Senate tax bills and would put more corporate income in reach of Minnesota tax collectors. DFL lawmakers argue it would level the playing field between companies with a global reach and those with only domestic operations. Senate Taxes Committee Chair Ann Rest, DFL-New Hope, said Wednesday that the proposal was designed to raise revenue to cover other costs without raising taxes that would touch most Minnesotans. “We wanted that tax increase the furthest away from individual Minnesotans, almost to the point where we have the members of this tax committee not even knowing what that tax is,” she said. When fully phased in, the tax is projected to raise roughly $350 million per year — about $1.2 billion in total over the next four years. Minnesota tax officials caution that it’s hard to firmly estimate because no other state has a law like it. “We feel confident that there is a good amount of income that could potentially be taxed under this proposal. We could be low, we could be high on this income,” said Eric Willette, director of tax research at the Department of Revenue. “We did what checking we had available, but it is a higher risk than a lot of — than some of — our other estimates where we have direct measures of the amount of tax that's affected.”
The House passed its tax bill Thursday night on a party-line 69-57 vote. It includes that corporate tax hike and higher income taxes on top earners. But Democrats stressed the $3 billion in tax cuts in the bill, including a reduction in taxes on Social Security income, rebates for 2.5 million Minnesotans and tax credits for low and middle income parents of young children. House Tax Committee Chair Aisha Gomez of Minneapolis said the legislation is good for Minnesota. "This bill is going to improve lives, it's going to make our tax code more simple and more fair,” Gomez said. “It focuses on families and on children who are in poverty and on seniors who are struggling economically." Republicans tried unsuccessfully to eliminate taxes entirely on Social Security income. Republican Rep. Bjorn Olson of Fairmont said it’s misleading for Democrats to say they’re excluding three quarters of recipients from taxes. “Anyone who can afford to leave the state of Minnesota in their retirement does,” Olson said. “That's why less than 50 percent of Minnesotans pay taxes on their Social Security today and we will continue to lose those immensely important individuals.” Republicans said many Democrats went back on campaign promises to abolish taxes on Social Security.
Surrounded by advocates and supporters of LGBTQ+ and reproductive rights, Gov. Tim Walz signed three bills into law Thursday. MPR’s Nina Moini reports they are meant to make Minnesota a refuge for those seeking gender-affirming care and abortions, and to ban what's called conversion therapy for youth and vulnerable adults in the state. “It’s done,” Walz said as he signed the first of the three bills. “Minnesota says, ‘Welcome to a state who values who you are and protects you for who you are.’” Lt. Gov. Peggy Flanagan told the crowd Minnesota will continue to provide a safe place for those seeking and providing critical health care services to people who need it, particularly, LGBTQ+ youth. “I want you to know that you are seen, that you matter, you are loved, we have your back,” Flanagan said. “We want you to be alive.”
And a multibillion-dollar transportation funding bill that would increase metrowide sales taxes has cleared the Minnesota Senate. The 36-31 vote Thursday sets up negotiations with the House, which approved the tax along with a new delivery fee. Republicans criticized the half-percent sales tax increase for transit and other revenue increases to pay for road repairs. “We have a $17.5 billion surplus and we're going to increase taxes by $2.7 billion,” said Sen. John Jasinski, R-Owatonna. “And again it does come down to priorities.” DFL Senate Transportation Chair Scott Dibble of Minneapolis said a reliable, dedicated funding stream is needed for transportation projects. “Sure, we could do a one off and then we'd still be in the same soup that we're in today,” Dibble said. “But we have this opportunity to invest for the long term the way we've needed to for over 30 years.” Talks on a compromise bill will begin soon.
Tell MPR News: What do you hope lawmakers accomplish this session?
| 