fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

Booming tax revenues show that the state government didn’t need to hike taxes

Did Minnesota’s state government have enough money, or should its citizens hand over more of their money in taxes? That was one of the central questions in the last legislative session in Saint Paul.

As I wrote at the time, the numbers show that Minnesota’s politicians actually have a near record amount of cash to spend.

According to the Minnesota Department of Revenue, in 2017 – the most recent year for which we have data – the state government collected $23.9 billion in taxes. In real, inflation adjusted terms, this was more tax revenue than in any other year in history except for 2016, when it collected 0.9% more. The story is much the same in per capita terms. In 2017, state tax revenues were $4,295 for each Minnesotan, the third highest amount in history, down 1.7% from the historic high of 2016.

From these near historic highs, revenues are set to rise even further. In February, Minnesota’s government was forecast to take $1 billion more from the state’s taxpayers in the next two years than it needs to cover its projected spending over that same period.

And this rosy picture improved further last week when the Department of Minnesota Management and Budget reported that revenue was $489 million higher in April than had been projected

The good fiscal news continues

This week, Minnesota Management and Budget (MMB) announced that, in May, the state government collected $148 million more revenue than it had forecast. Individual Income Tax receipts were $12 million above forecast and General Sales Tax were $73 million above.

Of course, there are caveats, and MMB explains what those are. But for the fiscal year that ends this month, the state has now pulled in $722 million more than anticipated. In May, I wrote that The already weak case for hiking taxes on Minnesotans just got weaker. It just got weaker still.

John Phelan is an economist at the Center of the American Experiment. 

Comments

Subscribe

Categories

Upcoming Events

  • Morning in Minnesota Breakfast: St. Cloud

    Location: Coyote Moon Grille 480 55th Ave SE, St. Cloud, MN 56304

    Please join Center of the American Experiment on Wednesday, October 16that Coyote Moon Grille for breakfast with Center policy fellow and energy expert, Isaac Orr. Following his discussion of his new report, “Doubling Down on Failure,” Isaac will be joined by a panel of local leaders for a conversation about renewable energy standards in Minnesota. Wednesday, October 16, 2019 Coyote Moon Grille, 480 55th Ave SE, St. Cloud, MN 56304 7:30 AM Breakfast & Check-in 8:00 AM Presentation 9:00 AM Conclude Free, RSVP Here

    Register Now
  • Morning in Minnesota Breakfast: Mankato

    Location: Mankato Golf Club, 100 August Drive, Mankato, MN 56002

    Please join Center of the American Experiment on Thursday, October 17that the Mankato Golf Club for breakfast with Center economist, John Phelan, as he discusses Minnesota’s economic future. Thursday, October 17, 2019 Mankato Golf Club 100 August Drive, Mankato, MN 56002 7:30 AM Breakfast & Check-in 8:00 AM Presentation 9:00 AM Conclude Free, RSVP Here

    Register Now
  • Morning in Minnesota Breakfast: Alexandria

    Location: Alexandria Golf Club 2300 North Nokomis Northeast Alexandria, MN 56308

    Please join Center of the American Experiment on Wednesday, September 25th at the Alexandria Golf Club for breakfast with Center policy fellow and education expert, Catrin Wigfall, as she explains the Center’s “Great Jobs Without a Four-Year Degree” project. Following her presentation on workforce development issues, Catrin will be joined by a panel of local leaders to discuss how Alexandria can better attract and retain young talent. Wednesday, September 25, 2019 Alexandria Golf Club 2300 North Nokomis NE, Alexandria, MN 56308 8:00 AM Breakfast & Check-in 8:30 AM Presentation 9:30 AM Conclude Free, RSVP Here

    Register Now