Gov. Walz lays out 2022-23 budget proposal including tax hike on top earners

Walz recommends expanding the Working Family Tax Credit for more than 300,000 households

ST. PAUL, Minn. – Minnesota Gov. Tim Walz proposes an over $52 billion, two-year budget with an emphasis on COVID-19 recovery.

It includes tax hikes on the state’s highest earners and corporations.

The bulk of his budget focuses on ensuring students catch up on learning, and supporting small businesses and working families.

Despite a $1.2 billion budget deficit, Walz is proposing spending $1.3 billion in new investments.

His plan includes a 1% increase to education funding in the first year and 2.5% in the second year.

Walz recommends expanding the Working Family Tax Credit for more than 300,000 households.

Regarding the pandemic, Walz says, “We’ve seen that while certain folks [are] impacted negatively, there’s been others that did incredibly well because of the nature of COVID-19. So, what we need to do, as we always do on this, is a thoughtful budget that understands that this is more than a fiscal document, it is a moral document.”

Republicans who control the Senate say they would not support any tax hikes.