Minnesota Gov. Tim Walz has released his 2 year budget proposal, saying his package bolsters his education plan and offers economic relief for small businesses and families hurt by the COVID-19 pandemic.
The governor’s proposal is estimated at $52.4 billion. Walz presented his budget at a noon press conference on Tuesday.
The governor is seeking at 1.5% increase in the income tax for those earning $1 million or more. He wants the capitol gains tax to increase by 1.5% as well; that is a tax on investment gains.
Walz said, “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 hit hard and they need our help.”
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.
The Walz budget is the first round in what will be a showdown over the budget with Republican Legislators.
The state was projected to see a $1.3 billion deficit over the upcoming 2 year period. However, state leaders are optimistic about a better forecast next month. Additionally, they say federal relief will help fill the gap.
The State Legislature must adopt a new budget before the current one expires on June 30th.