U.S. Rep. Pete Stauber told Gov. Tim Walz in a letter last week that his “ineptitude” is to blame for the fact that Minnesotans will have to pay federal taxes on their rebate checks.
The IRS recently determined that the one-time tax rebate checks issued this year will be subject to federal taxes.
Although Walz referred to the news as “bulls–t,” saying he lobbied the Biden administration to exempt the rebates from federal taxes, Stauber believes the misfortune could have been avoided.
“On January 30, 2023, President Joe Biden stated that he would end the national emergencies related to COVID-19 on May 11, 2023. Although most states were able to get their affairs in order over the three-month period, you did not sign legislation for tax rebates until May 23, 2023, 12 days after the deadline,” Stauber wrote to the governor.
According to Stauber, the Minnesota Legislature preoccupied itself with passing “extreme, left-wing” legislation last session instead of prioritizing financial relief for Minnesota families.
“At a time when inflation and energy prices are crippling Minnesota families, making them choose between putting food on the table or gifts under the Christmas tree for their children, this tax rebate was meant to provide a little financial reprieve. Because of your failures, Minnesotans could lose hundreds of millions of dollars,” he wrote.
Stauber also urged IRS Commissioner Danny Werfel to reverse the decision to tax the rebates.
“Minnesota ranks sixth on the list of highest state income taxes. We share more taxpayer dollars with the federal government than we ever get back. I implore you to take stock of my constituents as good, hardworking people who should not be unduly punished for the failures and delays of their state leadership,” he wrote to Werfel.
In total, roughly 2.1 million rebate checks were issued to Minnesotans. Those checks amounted to almost $1 billion. Single individuals received $260 and married couples received $520, plus $260 for up to three dependents, meaning Minnesotans could owe between $26 and $286 in taxes to the federal government.
While running for reelection, Walz vowed to “push” for $2,000 checks. Under the plan that ended up passing, the maximum rebate was $1,300.
Anthony Gockowski
Anthony Gockowski is Editor-in-Chief of Alpha News. He previously worked as an editor for The Minnesota Sun and Campus Reform, and wrote for the Daily Caller.
