Meet the Winners and Losers in the Fight for Paid Family Leave
Passing legislation shouldn’t result in winners and losers. However, with Minnesota Democrats in charge of the one-sided conversation on Paid Family Leave, it’s only a matter of time before the winners and losers are determined.
WINNERS:
Minnesota Democrats: The passage of a Paid Family Leave program, something Democrats have championed for years, will without a doubt energize the base and get them excited, regardless of the consequences. The fact that Democrats have created another government department to employ hundreds of full-time employees and create a new revenue stream for the state will be an added point in their favor song their base.
Minnesota Management and Budget (MMB): The big point for MMB will be the added revenue stream. So far, they’ve had the opportunity to report on a growing surplus that has broken records over the last two years. With a surplus of $19 billion and a proposed new revenue stream of an additional $1B+ in new payroll taxes, the surplus for the next biennium could be even higher.
LOSERS:
Small Business Owners: Being a small business owner isn’t easy as they face rising overhead, rent and other expenses. Now, Democrats in St. Paul want to treat the mom-and-pop restaurant that employs five workers the same as they'd treat a 3M or Best Buy. In addition to a new payroll tax, they would also be required to hold on to the jobs of those using their Paid Family Leave time, all while paying for them to keep their employee benefits and find someone to temporarily take their place. All of this is being done without incentives for these small businesses. With all that added financial burden, many will be asking themselves… are the marginal profits worth the bureaucratic red tape before them?
Minnesota Workers: Let’s be honest. The economy isn’t great for working families right now. Inflation continues to run rampant, prices in the grocery store and at gas stations continue to climb. Employers are laying off workers and businesses are struggling to find workers. Now tack on another payroll tax that eats into your paycheck before you even get it in your hands. That means less money for bills, for your rent or mortgage, for groceries, or even extra curricular activities for your family.