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News from Rep. Glenn Gruenhagen 3-18-2016

Friday, March 18, 2016
Dear Friends,

As we wrap up the second week of the Legislative Session, I’ve come across come information you may find interesting.

Recently, the Center for the American Experiment sent out a press release stating that Minnesota lost just under $1 Billion in taxpayer income due to the high tax rates in the state. This loss of income results in substantially less tax revenue for the state. This is up dramatically from a $490 million estimated loss three years ago.

This increase in loss of taxpayer income correlates directly with a substantial tax increase passed by the DFL in 2013.

Minnesotans are moving to other states with lower income taxes in an effort to make ends meet and protect their incomes. Our state is becoming a less and less attractive place to live. The top wage earners in our state are migrating elsewhere, which means their earnings are no longer in our state’s economy.

Our high business tax rates also discourage companies from moving into Minnesota to create more well-paying jobs, which will ultimately impose more hardship in an economy where many people are underemployed, or employed at lower-paying jobs than before the recession.

These findings by the Center for the American Experiment make it even more clear that tax reform needs to remain an integral part of our strategy for this session. Families and individuals alike are feeling the pinch, and Republicans will continue to press for meaningful tax reform.

Please contact me with any of your questions and concerns for this session. I always appreciate your input.


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