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Politicians should not use the budget deficit as an excuse to increase taxes

In response to Minnesota Management and Budget’s deficit projection, Center of the American Experiment economist John Phelan released the following statement:

“Politicians should not use the budget deficit as an excuse to increase taxes, especially during an employment crisis that rivals the Great Depression. Minnesotans are already some of the most heavily taxed citizens in America, and it is not just the rich who are taxed heavily: Our lowest income tax rate of 5.35% is higher than the highest tax bracket in 25 states.

“Furthermore, state spending has increased so drastically in recent years that budget cuts are overdue. If we spent the rainy day fund and then balanced the budget by decreasing spending, per capita spending would fall by only $6 per person. That budget correction is hardly draconian.”




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