With its inability to pass even the most basic and common sense legislation in a timely fashion, the Minnesota Legislature has hit Minnesota’s employers with a huge tax increase.

This increase could have been avoided if the state had just agreed to repay the debt in the Minnesota Unemployment Insurance Trust Fund, a $2.7 billion deficit that arose due to the unexpected unemployment caused by the COVID-19 pandemic. The federal government stepped in with enhanced federal unemployment payments, but the bill has come due and Minnesota has to refill its trust fund.

The state is sitting on a massive surplus of $9 billion and a $1 billion pile of federal pandemic aid that could easily cover this cost. The Republicans in the state senate and in the House want too do just this, but the Democrats in control of the House have bollixed it up by insisting on a dollar-for-dollar deal that would provide $1 billion for enhanced “hero bonuses,” payments to essential workers who served so steadfastly through the pandemic.

When the Legislature could not reach an agreement by March 15, the debt passed on to employers, who will be hit with a business tax increase to refill the unemployment trust fund.

Legislators still have a little time to come through before the tax payments have to start. They should take care of business, and we do mean take care of Minnesota’s businesses, immediately.