October 11, 2024

DFL Running MN Economy Into the Ground

In 1971, the state economy was so strong that the governor at the time, Wendy Anderson, was featured on the cover of Time Magazine with the words, “Minnesota Miracle”. How would the state’s 2023 budget enacted by a DFL-controlled legislature compare?

Mark Haveman, Executive Director of the Minnesota Center for Fiscal Excellence, stated recently that the difference is transformational and exponentially worse in terms of fiscal responsibility. In one year, state government spending grew 35%. Speaking to the Republican Seniors at their September meeting, Haveman considers the 2023 budget as fiscally unsustainable because revenues are highly dependent on

1. income taxes which are volatile partly due to migration from the State, and

2. federal assistance which is likely to decrease because of increasing federal deficits and politics.

Key points from Haveman’s talk:

• Minnesota has taken on the social welfare responsibilities traditionally left to the national government that does not require a balanced budget.

• We already have higher taxes than other states; we are the 5^th highest for income taxes, have the highest corporate income tax rate (9.8%) and the highest tax on foreign earnings for corporations (50%).

• One in 4 Minnesotans pay no income tax. But when 1-million-dollar earner leaves Minnesota, it takes 100 regular tax filers to make up the taxes we miss.

You can listen to his complete presentation on a MN Republican Seniors YouTube recording, starting at the 30:15 minute point. You can find more on his organizations’ website: www.fiscalexcellence.org. Scroll down to the bottom of the website to get their reports sent via email.