Democratic leaders in the Minnesota House unveiled a two-year spending plan Monday that uses new taxes on corporations to help pay for education and other programs.
House Speaker Melissa Hortman, D-Brooklyn Park, said her values and priorities are similar to Democratic Gov. Tim Walz's, but added that the House is "more aggressive on tax fairness."
"Years of Republican trickle-down economics and tax cuts for corporations and the wealthy have exploded income and wealth inequality," Hortman said. "This inequality is bad for our economy. At the same time investments in public goods like education have stagnated and in some cases even fallen."
House Democrats said they will look at closing corporate tax loopholes, among other potential tax changes, said House Taxes Committee Chairman Paul Marquart, D-Dilworth.
"I don't think a business and a farmer should be paying more in taxes because some company is able to use gimmicks to shelter their profits in Bermuda," Marquart said. "I don't think it's fair that a senior citizen or a working family should pay more in taxes because we're letting some company get by with using gimmicks."
While House leaders declined to delve into details, the tax and spending targets guide committee leaders as they develop major finance bills.
The real budget fight will start Thursday when Republican Senate leaders offer their spending blueprint. The House, Senate and Walz must reach an agreement before the end of session on May 20.
Republican lawmakers in the Senate said they saw too much spending in the Walz and House plans.
