Minneapolis (WCCO) – During a press conference held at noon on Tuesday, Governor Tim Walz released his two year budget proposal. His proposal aided his education plan and would offer economic relief for small businesses and families affected by COVID-19. This proposal has an estimated value of $52.4 billion.
The governor is seeking a 1.5% increase in the income tax for those earning $1 million or more. He also wants the capital gains tax to increase by 1.5% as well which is a tax on investment gains. Walz also wants an increase in the corporate tax rate from 9.8% to 11.25%. He wants to reinstate the estate tax exclusion and called for an increase on cigarettes and vaping products.
“Not every Minnesotan was impacted by the COVID-19 pandemic equally. We know the COVID-19 pandemic hit our working families, small businesses, and students particularly hard. They need our help,” Walz said. “The budget I am unveiling today will make significant strides in helping those Minnesotans stay afloat.”
This budget that Walz proposed is the first volley in what will be a showdown between Republicans and Democrats that if they can’t agree on a budget there could be a government shutdown in July.
The state was projected to see a $1.3 billion deficit over the upcoming two-year period. However, state leaders are optimistic about a better forecast next month. They say federal relief will help fill the gap.
The state Legislature have until June 30th to approve a new budget.