Minnesota lawmakers proposed but did not pass a wealth tax last year, according to a recent New York Times article listing states with wealth tax proposals.
While details remain unclear, the bill would likely impose a tax on high net worth individuals’ assets or unrealized capital gains.
The New York Times cited the proposal as evidence of growing nationwide momentum for taxing the ultra-wealthy. However, the future of a wealth tax in Minnesota remains uncertain.
Supporters argue it could raise significant revenue to fund pressing needs like education, healthcare, and infrastructure. “It’s overdue for the wealthy and corporations to pay their fair contribution,” said the advocacy group We Make Minnesota.
Critics counter that higher taxes could prompt the wealthy to move elsewhere and hurt the economy. Last year, the Republican-led Senate blocked the bill from passing.
With Democrats newly in control of the legislature, a wealth tax has better prospects this session.
But Gov. Tim Walz has focused more on rebate checks, which benefit lower and middle income families. Some Democrats also prefer expanding tax credits over a wealth tax.