An overflow crowd in the State Capitol rotunda rallied this Saturday for permanent tax cuts in response to the record $9.3 billion state budget surplus. Center of the American Experiment sponsored the rally to pressure Gov. Tim Walz and the legislature to return the surplus to the people in the form of permanent tax cuts. Speakers at the rally included John Hinderaker (President of Center of the American Experiment), Former Congressman Jason Lewis, Scott Hennen (Flag Family radio), Jon Justice (KTLK radio) and Dan “Ox” Ochsner (KNSI radio).
The enthusiastic crowd frequently broke into chants of “It’s our surplus, Give It Back!”
We’re not sure if the Governor heard much about the Give It Back rally at the Capitol Saturday, but he did talk about tax cuts in the early part of his State of the State speech Sunday night. Walz reiterated his call for one-time rebates, but also said he was open to permanent middle class tax cuts. Unfortunately, he continues to divide Minnesotans by class, insisting that “massive corporations and the wealthiest” don’t need a tax cut.
If Walz is to agree to permanent tax cuts, he”ll have to scale back his plans to spend almost all of the budget surplus. According to his own budget office, his revised two-year budget now spends $60.7 billion dollars, leaving only $257,000 on the bottom line.
The tax rally was part of American Experiment’s ongoing Give It Back campaign that includes a landing page with information on the surplus and a call to action so Minnesotans can easily craft and send an email or video to the governor and their state representatives.
American Experiment also released a report on the state budget that serves as a guide to Minnesota legislators and Gov. Walz as they determine what to do with $9.25 billion in overcollections from taxpayers. The Case for Permanent Tax Cuts for Minnesota makes a strong case that Minnesota’s state government is already spending at historically high levels. In 2020, Minnesota’s state government spent $4,348.20 for every state resident, the highest amount on record and 5.9 percent higher than in 2016. Minnesota also has the sixth highest rate of state personal income tax in the United States. American Experiment recommends using the ongoing structural surplus to permanently cut personal income taxes across the board.