Minnesota’s state budget is once again in good economic condition, despite the continued over-collection from state taxpayers.
Our economic analysts announced on February 28 that Minnesota will now see a $329 million budget surplus. You may recall these same folks said we’d have a $188 million deficit in November, which was followed by “sky-is falling” shrieks from Democrats who tried to convince the public that Republican-supported tax relief laws created this alleged deficit.
We’ve now proven that those scare tactics were nothing more than that.
Tax collections are up nearly across the board. Rising general sales tax projections, up by $119 million, and corporate tax projections, up $131 million, are the top reasons for Minnesota’s budget surplus projection.
This means increased economic activity from hardworking Minnesotans. It also means the federal tax cuts brought forward thanks to the leadership of President Trump and a Republican-controlled Congress are working. Couple that with the historic $650 million tax relief proposal we approved last session that is now positively impacting the middle class, and you have the reason for Minnesota’s solid economy.
That said, the reason we have too much of your money is because we’re taxing you too much, which is why my surplus preference is to find more ways to give you tax relief.
It’s clear that tax cuts are providing the fuel that’s causing our economy to perform well. Further tax cuts will continue this positive progress, slow the over-collection of the people’s money, and allow them to keep more of what they earn. Our economy is performing well – and now it’s time to step on the gas.