New Budget Forecast Shows Tax Surplus And Slower Economic Growth

John Phelan, Economist at Center of the American Experiment says the report shows there is no need for tax hikes.

Image by ccPixs.com

This is part of our series on the debate over the new budget for the State of Minnesota. To see previous articles on the new proposed budget click here

________________________________________________________________________

Minnesota Management and Budget released a new economic forecast that shows the government still has a surplus of over $1,000,000 that it collected from the taxpayers but also shows slower economic projected growth compared to the previous report.

Governor Tim Walz has recently proposed record high spending increases with additional tax increases. 

Wals told reporters that despite the report he will continue to pursue his large budget with tax increases.

“What Minnesotans do know is if we continue to do the haphazard approaches or just assume that the budget and economy is going to be great, we’re going to fall further behind,” Walz told reporters after presenting his budget. “We are going to have other catastrophes, whether it be bridges, roads or people who are stuck every single day in unacceptable gridlock.”

John Phelan, Economist at Center of the American Experiment however says the report shows there is no need for tax hikes.

“With a $1 billion surplus and state tax revenues near an all-time peak – tax collections are up by 31% in real terms since 2010 – there is simply no need for massive tax hikes like those proposed in the governor’s budget. Before squeezing working Minnesotans even harder, lawmakers should find out why the state is still failing in one of its core duties, to maintain our transportation infrastructure, when more taxes are being collected than ever before.”  said Economist John Phelan

Jake Duesenberg who leads conservative activist group Action 4 Liberty also says the forecast shows that legislators should “eliminate the death tax, get rid of social security taxes and never let the Walz gas tax see the light of day”

Duesenberg pointed out that the budget surplus that the spending will increase an automatic 4.2% and that the government will keep $2,400,000,000 in budget reserves.