No tax hikes this session
On Monday, May 17, the Minnesota legislature announced they have agreed on a $52 billion budget for the next biennium. As reported by the Star Tribune,
The leaders of the Minnesota Legislature and Democratic Gov. Tim Walz announced a $52 billion deal for the state’s next two-year budget on Monday, but lawmakers will have to finish the work next month and difficult negotiations still lie ahead on police accountability and other policy issues.
The agreement calls for a balanced two-year budget without raising taxes, while fully exempting from state taxes federal Paycheck Protection Program loans to businesses and unemployment insurance benefits that were raised during the pandemic. It also includes extra money for summer school to help students catch up after a year of distance learning.
“Minnesota did it again. We found commonality amongst ourselves,” Walz said at a news conference called to announce the deal, which was reached at about 12:15 a.m.
American Experiment has pointed out time and time again: taxes in Minnesota are already high; the rich pay a disproportionate burden of the state income tax; and spending is at its highest level compared to any other point in history. In addition to all of these factors, Minnesota is also receiving billions in federal aid, and tax collections have been higher than anticipated.
For all the reasons above, it makes very little sense that Gov. Walz and other policymakers fought so hard to raise taxes on Minnesotans. With our taxes already so high, and more than enough money coming in to cover our the state government’s basic functions, the decision reached by the legislature is nothing more than common sense.