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My Point of View by Brad Kramer

Minnesota’s recent legislative disasters imposed by Democrats are beginning to go into effect in stages from 2024-26. With our new Sick and Safe Time law, it’s obvious that the burdens extend beyond employers. This payroll tax, set to be shouldered by both employers and employees, brings pitfalls that far outweigh the benefits.

The already-expensive program has seen a pre-emptive increase in the payroll tax due to projections surpassing initial estimates before the ink was dry.

This state-run program is universal, a one-size-fits-all solution that takes away the flexibility you enjoyed with existing benefits. Remember when Obama promised, “If you like your plan, you can keep it”? Well, brace yourself for déjà vu because this robs people of their choices. A chunk of your hard-earned money is earmarked for a massive 400 person state government bureaucracy, pulling resources away from the actual paid leave. We’re paying for the privilege of more paperwork and red tape, for employees, employers, consumers and taxpayers.

In rural communities, the impacts will be brutal. Small and medium-sized businesses are going to feel the pinch. Finding temporary employees to fill in for those on leave turns into a logistical nightmare, and that will mean closures and relocations for local businesses. It’s like the program is designed to favor larger businesses that can handle the financial load, leaving the little guys to fend for themselves.

The ripple effect extends to local schools and municipalities, forced to raise property taxes to fund the new mandate. Taxes you will pay. This places an additional financial strain on individuals already struggling with basic necessities. The looming two-year period before anyone reaps the benefits amplifies the absurdity.

Republicans had a different proposal, the MN Family and Medical Leave Insurance Program (MN FaMLI). We suggested something more workable, but Democrats turned a blind eye, and now we’re stuck with this bureaucratic mess. Here’s some key highlights from the MN FaMLI plan that Democrats shot down:

1. Benefits available from Jan. 1st, 2024 — 18 months earlier than House File 2 that we are now stuck with.

2. Small business tax credit incentivizing employer participation.

3. Individuals could opt into the program for $5/week if their employer chose not to join.

4. If you were happy with your existing benefits, you could keep them without being forced into a government-run program.

5. MN FaMLI private option backed by an insurance company, relieving taxpayers of program shortfalls.

6. Flexibility tailored to both employer and employee needs, without imposing new taxes and mandates.

I’m vice chairman of the Board of Managers for the Shell Rock River Watershed District and am already grimacing as our watershed prepares to make the financial commitment required by the upcoming requirements. Guess where this extra money is coming from? You, the taxpayer. Are you still reeling from the increase in taxes from the city, county and our school district? Hang on to your wallets because there is more to come from this Democrat-imposed disaster.

When this legislation fully kicks in, employees will have the green light to take paid time off without needing employer approval for a laundry-list of reasons. Sounds compassionate, right? Well, here’s the kicker — essential services that are already stretched thin, like nursing homes, school bus companies, first responders, day care centers and others, will see more employees taking time off. Concerned about grandma’s care in the nursing home?

Staffing shortages will make things worse. Bus garages short of drivers will mean longer rides for your kids or a call asking you to figure out alternative transportation, or simply increasing the radius of where parents are expected to transport their own kids from. Day care centers struggling to meet staffing requirements will leave you scrambling for child care. Not very compassionate, is it?

Businesses are already counting the cost of hiring employees under this new system. If they can’t afford it or can’t rely on employees showing up, they will decide to pack up and move to greener pastures — places like Iowa, where the business environment is friendlier. Have you noticed the businesses and people fleeing California and New York? Minnesota will be next if we keep down this path paved by Democratic legislation, especially in our border community where we already see local businesses shifting towards Iowa. Businesses will focus on automation, AI and offshoring. Less opportunities for you, and more tax burden, too. Thanks, DFL.

Blind idealism is destroying our economy. We must weigh the consequences for businesses, communities and essential services. Finding a balance between compassion and economic sustainability is not easy, but blindly following an irresponsible plan will only lead to more poverty. Republican alternatives meet our societal needs without compromising our individual freedoms and the vitality of our communities. Vote Republican in November so our state can prosper while building communities where our families feel safe again. Join us!

Brad Kramer is a member of the Freeborn County GOP Party.