ST. PAUL – Following news from Minnesota’s Management and Budget Office that “the stimulus” from tax reform is credited for our state’s $329 million budget surplus, State Representative Bob Gunther (R-Fairmont) said its time for naysayers to recognize that tax relief for middle-class Minnesotans is paying dividends.
“I’ve been told every tax relief dollars cycles through our economy seven to nine times a year,” Gunther said. “Every time that happens, people are paying taxes on those dollars and putting more money into our coffers and strengthening our economy.”
Last year hardworking Minnesotans benefited from the largest tax relief proposal approved at the state legislature over the past two decades. This $650 million plan included Social Security tax relief for senior citizens, a first-in-the-nation tax credit for college student loan payments, property tax relief for every small business owner, and improved dependent care tax credits for working families.
How has this impacted Minnesota? Gunther points out that Minnesota now has its lowest unemployment rate in 17 years. Minnesota’s seasonally adjusted unemployment rate fell to 3.1 percent, 1.0 percentage point below the national rate and 0.9 percentage points lower than a year ago.
There are also fewer unemployed job-seekers than open positions across the state. The ratio of unemployed persons to job vacancies statewide has hovered between 1.0 and 1.2 for the last three years, but it is now less than one at 0.9.
Gunther said that a federal tax relief law has also contributed to this Minnesota success story.
“There’s no doubt that our tax relief bills are bearing fruit, and that tax cuts create economic development,” Gunther said. “It’s time people recognize that Minnesota’s economy is on a roll.”