Minnesota State Representative Patti Anderson announced on Apr. 17 that the “Take It Back Act” (HF4950), a bipartisan anti-fraud bill she has chief-authored with Senator Steve Drazkowski, is gaining momentum in both the House and Senate.
The bill proposes a 100% tax on state funds obtained through fraud, targeting individuals and organizations convicted of such offenses. This tax would be imposed in addition to any court-ordered restitution already required from those found guilty. Anderson said the measure aims to deter potential fraudsters and help recover stolen public money.
Anderson addressed concerns about recent service cuts and significant tax increases, stating: “I receive phone calls and emails every day from Minnesotans who are angry about cuts to services, as well as the $10 billion in tax increases that they have been burdened with to cover this stolen money. Nobody likes paying taxes, but it is made even more painful when you feel that your hard-earned money will simply be hijacked by fraudsters, rather than invested into infrastructure that improves your life.” She added: “As a business owner and taxpayer, this is how I have been feeling as well, and I want to do something about it. The Take It Back Act will be an important step for deterring potential fraudsters, as well as recouping as much of our stolen money as possible.”
Under the current version of the bill, recovered funds would be deposited into a “Taxpayer Relief Account,” which would then provide income tax relief for Minnesotans. Anderson explained enforcement measures: “We are willing to use all means necessary to make the Minnesota taxpayer whole. Under this bill, if someone is convicted of defrauding the state, the Department of Revenue will have the authority to immediately seize their assets (homes, vehicles, etc.). We will likewise garnish their wages until all funds are restored. Many criminals will likely be driven into bankruptcy from this process. Good. Let it be a deterrent to people who think they can take advantage of the generosity of Minnesotans.”
Anderson also highlighted bipartisan support for HF4950: “In a time of political polarization, the Take It Back Act is an example of a healthy bipartisan effort to take action against Minnesota’s fraud epidemic.” The act currently has 69 authors in the House; about one-third are members of the Democratic-Farmer-Labor Party.
The legislation is scheduled for hearings before both House and Senate Taxes Committees by month’s end.
