Radinovich introduces business tax cut legislation
State Rep. Joe Radinovich, DFL-Crosby, recently introduced HF 577, a bill that would reduce the Unemployment Insurance tax (UI) paid by employers.
The bill would lower the UI base tax rate to 0.1 percent, reducing business taxes by $346.5 million over two years.
“This bill provides businesses with more money that they can then use to hire new workers, expand their business, and grow our economy,” said Radinovich. “With our economy still slowly recovering, this could be a nice boost for businesses around the state.”
Minnesota’s UI tax rates are determined by the balance in the UI Trust Fund. The Trust Fund has recovered from the economic downturn and is projected to have sufficient reserves — well within the solvency levels recommended by the federal government — to meet future needs.
“Not only does this bill cut taxes for area businesses and put more money in their pockets to create jobs, it doesn’t use money from the General Fund or explode our already-large budget deficit,” said Radinovich. “In my opinion, that’s a win-win.”
The bill has bipartisan support and Republican co-authors.
“I’m very pleased to have bipartisan support for this legislation,” said Radinovich. “Bipartisan, common-ground solutions are good for Minnesota and good for our economy. I look forward to working with my colleagues to get this done.”