ST. PAUL – An updated state budget forecast continues to find positives in Minnesota’s economy.
On February 27, economic experts projected Minnesota now has a $17.5 billion budget surplus. This takes into account the increased spending that has already been signed into law, as well as inflation which is estimated at $1.42 billion.
“The budget surplus news remains positive and serves as further confirmation about the need for immediate, permanent, and significant tax relief,” Davids said.
According to the Minnesota Management and Budget Office, higher collections this fiscal year and higher profits raised the individual income and corporate franchise tax forecast.
With this surplus, Davids said all tax increases should be off the table and that the focus should be on finding ways to allow Minnesotans to keep more of what they earn – especially legislation that provides all senior citizens with Social Security tax relief.
“While state government is doing great, the Biden/Walz economy has not been kind to most Minnesotans as they are struggling to pay more for groceries, gasoline, energy and almost everything else,” Davids said. “Tax relief will help them with rising costs now and in the future.”