Budget Deficits on the Horizon

by | Apr 23, 2018

With an official projected state budget surplus of $329 million in the current fiscal year (FY) 2018-19 biennium and $580 million in the upcoming FY 2020-21 biennium, some state lawmakers are giddy about the prospects of more tax cuts during the 2018 legislative...

Minnesota Per Capita GDP Growth Surpasses U.S. Average

by | Apr 18, 2018

High per capita gross domestic product (GDP) states—such as Minnesota—tend to have lower rates of GDP growth over time, for reasons discussed in part 1 of this series. However, Minnesota has successfully bucked this trend during the current business cycle, with per...

Convergence is Back! (It Never Really Went Away)

by | Apr 11, 2018

Convergence refers to the tendency of states with below average levels of economic activity to enjoy somewhat higher growth rates than other more prosperous states. Convergence occurs because less well-performing states tend to make up ground over time relative to...

Minnesota Still Outperforming “Right to Work” Wisconsin

by | Apr 4, 2018

For most of the last decade, earnings in Minnesota and Wisconsin grew at a similar pace—until 2015. In that year, Wisconsin adopted its so-called “right to work” (RTW) law. Since then, earnings growth in Wisconsin slowed relative to Minnesota. In 2017, the average...

The Federal Tax Act’s Minnesota Impact: Steeply Regressive

by | Mar 30, 2018

Corporate elites and wealthy Americans celebrated when Congressional conservatives and President Trump rolled out the so-called “Tax Cuts and Jobs Act” (TCJA) late last year—and with good reason. The TCJA was overwhelmingly regressive, sending a disproportionate share...

Minnesota’s Only Frozen Tax: The State Business Property Tax

by | Mar 27, 2018

State and local taxes in Minnesota typically grow over time in response to increased consumption and rising economic activity, and to keep pace with the growing demand for public services. There is one notable exception to this rule: the currently frozen state...