Minnesota State Representative Marj Fogelman announced on Apr. 23 that she is co-authoring legislation to impose a 100 percent fraud tax on individuals and organizations convicted of defrauding Minnesota taxpayers.
The proposed legislation aims to address concerns about the scale of fraud affecting state funds, with supporters saying it will help recover stolen money and provide relief for taxpayers.
Fogelman said the measure would require anyone convicted of fraud, or those compensated for participating in fraudulent activity, to pay a tax equal to the amount they stole from taxpayers. “If these people can find a way to rip us off, they can find a way to pay us back,” Fogelman said. The new tax would be imposed in addition to any court-ordered restitution already required by law.
According to Fogelman, recent investigations have highlighted the scope of the problem: since 2018, Minnesota has spent $20 billion on Medicaid programs considered at high risk for fraud. She also cited an estimated $9 billion in overall state fraud losses as further evidence that stronger measures are needed.
The funds collected through this proposed tax would be placed into a dedicated account used exclusively for income or property tax relief. “I’m optimistic about its passage. The bill currently has 35 authors in the House, and roughly a third of its authors are Democrats,” Fogelman said.
Fogelman concluded by stating: “The public is rightfully demanding accountability for fraud, and this would hold convicted fraudsters accountable.”
