Archive for February 2017

February Forecast Surplus Could Be Illusory

The projected budget surplus for the upcoming FY 2018-19 biennium increased by $250 million to $1.65 billion, based on Minnesota Management & Budget’s (MMB) February forecast, released today. The surplus for FY 2020-21 biennium—the start of which is still 28 months away—increased by $684 million; however, inflation remains the 800-pound gorilla in the room, as…

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When Winning Big Isn’t Enough

In 2001, business lobbyists worked overtime not only to reduce business property taxes, but also to change to whom businesses pay those property taxes. They argued that local governments were too dependent on business tax base and not enough on homestead tax base. This, they claimed, made it too easy for local governments to increase…

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Rethinking the Research Tax Credit

A recent report from the Office of the Legislative Auditor (OLA) sheds new light on Minnesota’s research tax credit, also known as the research and development, or R&D, credit. This credit allows businesses that conduct qualifying research in Minnesota to reduce their state tax liability. The OLA report examines the question of whether the credit…

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Conservative Tax Claims Don’t Square With Reality

Minnesota Illustrated, a new report from the conservative Tax Foundation and the Minnesota Chamber of Commerce, makes some startling claims regarding taxes in Minnesota. Parts one and two of this series examined some of the Tax Foundation and Chamber claims regarding the state of Minnesota’s economy, which we found to be overstated in their pessimism.…

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Per Capita General Fund Revenue Less Than a Decade Ago

The enactment of significant tax increases during the 2013 legislative session, combined with state budget surpluses, has created the impression that Minnesota general fund revenue has grown considerably. This perception is accurate if we measure state revenues today relative to the depths of the Great Recession, but if we adjust for inflation and growth in…

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Minnesota Outperforms Regional Migration, Population Trends

A new report from the conservative Tax Foundation and the Minnesota Chamber of Commerce—Minnesota Illustrated—generally paints a gloomy picture of Minnesota. The previous article in this series showed that this portrayal was inappropriately bleak in several regards, as job growth has been comparable to the national average and well above the regional average and that…

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