Miller, Pelowski Don’t See Tax Hike to Makeup Deficit

Miller, Pelowski Don’t See Tax Hike to Makeup Deficit Click to Enlarge

(KWNO) Sen. Jeremy Miller (R-Winona) and Rep. Gene Pelowski (DFL-Winona) don’t see a tax increase as part of the solution to balance Minnesota’s budget.

According to an economic forecast released earlier this week, the state budget has gone from a $1.5 billion surplus to a $2.4 billion deficit due to COVID-19.

“It’s difficult to raise taxes when wages and salaries are down, many businesses are closed and people aren’t out and about which means sales tax revenues are down. It’s difficult to raise taxes when there’s no income being generated,” Miller said during an interview on KWNO’s In the Know Thursday morning.

“I don’t think raising taxes in the situation we are in right now is going to be part of the solution. It maybe part of the solution down the road but I don’t see it as part of the solution now,” said Pelowski.

The state does have over $2 billion in budget reserves. State Republicans have called for a reduction in government spending. Gov. Tim Walz said Tuesday that everything is on the table.

Leave a comment