Tax revenues are still coming in higher than forecast
According to the Minnesota Management and Budget (MMB), combined tax revenues in the months of November and December exceeded the November forecast by over $200 million — or 4.4 percent.
While individual income taxes were below forecast, all other revenues were above forecast, with the biggest increase coming from corporate income tax. As MMB explains,
Higher than expected gross tax payments more than offset higher than expected refunds.
Overall, it means that the state’s surplus, which was forecasted at a historic high of $17.6 billion in November, is up by $217 million — to over $17.8 billion.
Will they give the surplus back?
That is something that is yet to be seen. But with the DFL controlling both chambers, it looks very unlikely. While they have moved quickly to propose multiple bills that would raise taxes and spending in the first week of the legislative session, they are yet to propose anything that will give Minnesotans back their money.
But with Minnesota’s exceptionally high taxes, shouldn’t tax cuts be the first thing lawmakers propose, especially at a time of such massive over-collection of tax revenue? It only seems logical.