Troubling Proposals

​I hate to be negative, but there’s a lot of troubling proposals that are nearing the finish line at the Capitol.
 
Throughout the legislative session, our Chamber has expressed concerns with the Paid Family and Medical Leave (PFML) legislation. I’m worried about the long-term costs of this state-run program, both to the state budget and the compliance costs for counties, cities, and school districts (which will translate to property tax increases).
 
In this challenging labor market, a strong benefits package is a key tool for employee recruitment and retention. A shift to a state-run program, and the associated payroll tax increases, would likely mean the loss of existing benefits for many employees.
 
For these reasons, I’ve always favored an incentive rather than a mandate. That’s why I’m pleased to see there truly is a better alternative. The Minnesota Family and Medical Leave Insurance (MN FaMLI) plan would be an elective, cost-effective insurance policy that could be made available to all employers and employees in the state. Small businesses would be offered a tax credit to address the affordability of the plan. Individual workers could opt-in for $5/week if their employer did not participate. This would allow workers who enjoy their current benefits to keep them, rather than being moved into a one size fits all state program. Best of all, this private option would be back by an insurance company, not taxpayers, and would not require 400+ state employees.
 
As the Senate debates the PFML bill today, I truly hope lawmakers will recognize that this is a more cost-effective and workable option that deserves their support.
 
I’d also like to talk about taxes. I know in Minnesota we always want to be leaders. But do we really want to be the first in the world to adopt mandatory worldwide income reporting? This is unbelievable to me, so I’m glad to see that the Senate appears to backed away. And the fifth-tier income tax will further make our state a tax outlier and perpetuate an unfriendly business climate. And the fact that full elimination of social security benefits is not included in the tax bill will do nothing to stop the exodus of income from our state, which IRS data shows is clearly happening.
 
I’m disappointed that sitting here with a $17.5 billion budget surplus, this is the direction our state is going.
 
See you in the trenches,
B