The top Republican lawmaker on the Minnesota legislature’s tax committee is criticizing Gov. Tim Walz for “bad” and “lazy” tax policy related to the state’s gas tax, which the lawmaker says hurts residents the most. low-income residents in your state. .
“In general, there is a pretty strong resistance to putting something on the inflators, because that – I call it the ‘lazy man’s tax increase’ – because what you do then is you never have to go back through the legislature to justify another tax increase,” said Rep. Greg Davids, the top Republican who directs tax policy in the state. “Some rich person, yeah [the excise tax] It’s in an inflator and it goes up 10 cents a gallon, they say, so what? But for the person in the district that I represent, who drives 35 miles to work at the Mayo Clinic in Rochester, or different jobs in Rochester, that’s a lot of money, and now it’s increasing every year, no matter what.”
Davids has been on the state legislature’s tax committee for nine terms, including three as chairman and four as Republican leader, and argued Friday that the decision to tie the state’s gas tax to an index was a “very poor”, citing its regressive nature. nature and the fact that “it is hurting the poorest of the poor the most.
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“I try to stay away from regressive taxes. I try to stay away from inflators,” Davids said. “Because if your cause is good enough, you’ll get your raise. But exposing something that happens without representation of the people, in my opinion, is bad tax policy.”
Along with DFL legislative leaders and their commissioners, Minnesota Governor Tim Walz hosted a ceremonial party for the signing of the 2023 budget bill on the steps of the state Capitol. Walz stood in front of hundreds of supporters to boast about accomplishments in the nearly $72 billion budget made possible by DFL control of the state legislature and the governor’s office. (Photo by Glen Stubbe/Star Tribune via Getty Images)
In 2019, Walz’s first budget proposal as governor aimed increase the state gas tax by 70%, which would have placed the state among those with the highest gasoline excise tax in the country, behind California, Pennsylvania, Washington and Illinois. The proposal passed the Democratic-controlled House, but stalled once it reached the Senate.
Later, during an election year in 2022, Walz asked the federal government suspend the federal gasoline excise tax. Minnesota Republican Party Chairman David Hann called the move a “ridiculous political stunt” at the time, considering that Walz and his Democratic, Farmer and Labor (DFL) Party colleagues “have always supported” the tax increase. to gasoline.
Currently, Minnesota’s gas tax rating is on the lower end of the spectrum, but that will change after next year’s rate increase. Such an increase will move Minnesota up 11 spots on the list, making it the 21st highest in the country.
The current average cost of gas in Minnesota is $3.06, according to AAA, down from $3.43 a year ago. This photo shows a gasoline pump. (Getty Images)
Under Walz, the state of Minnesota did see tax cuts for the middle class, such as an increased child tax credit and a reduction in the Social Security tax rate. However, Davids questioned what Walz and his fellow DFLers did to squander a record budget surplus of nearly $18 billion in 2023. Meanwhile, by 2026, the state of Minnesota is expected to experience a deficit of about $1. $5 billion, Davids said.
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Other measures under Walz included efforts to raise taxes on corporations and the wealthy, such as a new “surtax” on long-term investment income.
The Tax Foundation, a nonpartisan tax policy nonprofit in the nation’s capital, called Walz an “outlier” when it comes to her tax policy, compared to those of Harris’ other potential running mates, including Pennsylvania Gov. Josh Shapiro and Kentucky Gov. Andy Beshear.
Governors Josh Shapiro of Pennsylvania, Tim Walz of Minnesota and Andy Beshear of Kentucky. All three are long-time Democrats.
“Governors bring executive experience. They also bring political backgrounds that are more concrete than those of legislators, in the sense that a governor’s signature or veto makes (or prevents) the law in a way that a governor rarely does. vote in Congress,” the Foundation wrote. in a report released several weeks ago outlining Walz’s tax policy as governor of Minnesota. “No doubt observers will look at Walz’s record as governor to get a sense of what policies he may favor at the federal level and what that may say about the Harris-Walz ticket.”
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Fox News Digital reached out to Walz’s press office and the Harris-Walz campaign for comment but did not receive an official response.
