The top Republican lawmaker on the Minnesota legislature's tax committee has criticized Gov. Tim Walz for what he deems as 'bad' and 'lazy' tax policy regarding the state's excise tax on gasoline. Rep. Greg Davids, a seasoned member of the tax committee, expressed concerns that tying the state's gas tax to an index disproportionately impacts lower-income residents, labeling it as regressive.
Davids highlighted the negative impact on individuals who have to commute long distances for work, emphasizing that annual increases without legislative oversight burden those who can least afford it. He argued against such 'lazy man's tax increases,' advocating for transparent and justifiable tax policies.
In 2019, Gov. Walz proposed a significant 70% increase in the state's gas tax, a move that faced resistance in the Senate despite approval in the House. Subsequently, during the 2022 election year, Walz called for the suspension of the federal excise tax on gasoline, drawing criticism from the Republican Party.
While Minnesota currently ranks lower in gas taxes, an upcoming index increase is set to elevate the state to the 21st-highest in the nation. Despite tax cuts for the middle class under Walz's administration, concerns have been raised about the management of a substantial budget surplus in 2023, with projections indicating a future deficit by 2026.
Walz's tax policies have been scrutinized by the Tax Foundation, which labeled him an 'outlier' compared to other governors. The Foundation highlighted the significance of a governor's policy record in shaping future federal policies, hinting at potential implications for a Harris-Walz ticket.
Efforts under Walz to increase taxes on corporations and the wealthy, including a new 'surtax' on long-term investment income, have further fueled debates on tax policy in Minnesota. Despite attempts to reach Walz's office and the Harris-Walz campaign for comment, no on-the-record response was received.
