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AFP-MN Opposes New Tax on Minnesota Families and Job Providers

ST. PAUL - Americans for Prosperity - Minnesota today announced their opposition to SF 2558, which would impose a new tax on all employees and employers in Minnesota in order to fund a new mandatory, government-administered paid leave program.

AFP-MN State Director Jason Flohrs says "This is nothing but a mandatory family tax that forces a one-size fits all approach onto businesses and their employees. Job providers in Minnesota are already struggling, as evidenced by a job creation rate that is lagging the national average. This mandate puts small and medium size businesses on the hook for the majority of the costs of this program, putting some at risk of closing their doors for good. Lawmakers need to allow business owners and employees to make their own decisions, not big government."

The proposed mandate would create a brand-new state-run trust fund which some estimates show could cost almost $100 million per year in administrative costs alone, while the benefit set would be the most far-reaching proposal in the country. The mandate is an intrusion on employers’ ability to negotiate benefits that work for both the company and the employee. Meanwhile, employers that currently offer leave options that wish to opt out of this government mandate would have to go through an onerous process to prove to the state that they meet the requirements.

"This mandate would go well beyond federal requirements and national norms. Only three other states have mandated paid leave, and this proposal surpasses them all in terms of cost and level of benefit. AFP-MN supports giving employers the flexibility they need to offer a competitive compensation package that works for their employees, without adding additional economic burdens. We will continue to fight for free-market solutions to the challenges that face Minnesota families and businesses." added Flohrs.

 

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