Minnesota Governor Slams Federal Taxation of State's Rebate Checks

Democratic Minnesota Governor Tim Walz criticized the federal government's decision to tax rebate checks received by Minnesotans this year, calling it "bulls---." The IRS's decision to tax the rebates while pandemic relief payments in other states were tax-free could cost Minnesota residents between $26 and $286, depending on income and the rebate amount. Walz has spoken to Biden administration officials about the issue but no progress has been made. He argued that Minnesotans were being treated unfairly because the state missed a cutoff by 15 days to qualify for tax-free status, while other states were able to qualify. The Minnesota budget is projected to have a surplus of $2.4 billion through June 2025.