DFL tax bill includes family leave, soccer stadium
Minnesota Senate Democrats have advanced a package of tax law changes that includes a family leave insurance requirement for many businesses.
The Senate tax committee approved the bill Tuesday on a divided voice vote. A full Senate vote on the bill is expected Wednesday.
The family leave mandate requires employers and employees to pay a new tax. DFL leaders combined the provision with several local government tax measures and a list of changes needed to align state and federal tax codes.
Senate Majority Leader Tom Bakk, DFL-Cook, said he wants workers in all parts of the state to have a family leave benefit.
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“This bill that we have in front of us today is not perfect yet. It still needs some work,” Bakk said. “But I think it’s important to continue the conversation or we’re going to have a huge patchwork around this state of Minnesotans who have these kind of benefits and Minnesotans who don’t. That just doesn’t seem fair.”
Republicans and business groups oppose the mandate.
Sen. Paul Gazelka, R-Nisswa, warned that the projected costs of providing the statewide benefit are too high and will hurt businesses.
‘The way we are approaching this right now, in my mind, is very fiscally irresponsible,” Gazelka said.
The Senate bill also include a tax break for the city of St. Paul to help build a new Major League Soccer stadium.
Stadium opponent Tom Goldstein told lawmakers that the project won’t benefit the neighborhood.
“Let’s not pretend that this stadium is about economic benefits or for immigrant communities, as it’s been pitched,” Goldstein said. “This is basically a business deal, and this is intended to benefit one of the wealthiest individuals in the state.”
The Senate bill could further complicate end-of-session negotiations with the House by bringing a host of new issues into the mix. Competing tax bills from last session remain unresolved in a conference committee.
“This is our step to bring provisions to the conference committee that we think are important to have in the tax conversation, as we close out the session,” said Senate Tax Chair Rod Skoe, DFL-Clearbrook.