ST. PAUL – Minnesota’s budget surplus continues to snowball. State Rep. Dale Lueck, R-Aitkin, said Minnesotans are long overdue for permanent tax relief and indicated there is no excuse for any further delay.
Minnesota Management & Budget issued its February economic forecast Monday and it projects a $9.3 billion biennial surplus. That figure is up $1.5 billion above the already historic $7.7 billion surplus projected in November. State officials indicate “A higher income, consumer spending, and corporate profit forecast results in an improved revenue projection while spending is slightly lower in E-12 education and Health and Human Services.”
Lueck said the state already is fully funded for the biennium with Minnesota taxpayer dollars and the governor has yet to spend all of the COVID-19 related federal dollars.
“Now is the time to correct this chronic over-taxation,” Lueck said. “I ask our friends across the aisle and the governor to stop with the lame excuses and join us in permanently fixing this problem. Minnesota’s lowest state income tax rate is higher than the top income tax rates in 17 states and that should be fixed. We also need to stop punishing our seniors and end Minnesota’s income tax on social security retirement pensions.”
In its report, MMB also indicates the structural balance in the FY 2024-25 planning estimates remains positive and largely unchanged from November.?It also says uncertainty due to inflation and geopolitical conflict pose risk to the budget and economic outlook.
“The future always holds risks; however we are on a path that will drive businesses and our seniors citizens to other states that have a more rationale tax policy” Lueck said. “We are surrounded by states with much more competitive tax policies, as well as states across the south that have no state income tax. The real risk is failing to act.”
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