The State Economic Forecast came out on Thursday, December 5, 2013. This is kind of the preview of the all important February forecast that will happen this year close to the beginning of the legislative session and which will set the expectations for whether the session will be about tax cuts spending increases. Given that last session, the Governor and the legislature passed a $2.1 Billion dollar tax increase and that it’s an election year, it’s not likely that there will be another tax increase.
In fact, the first thing that Governor Dayton said in his reaction to the November forecast was there since there was a Billion dollar surplus, was that he was looking to repeal some of the taxes that he put passed in 2013, namely, the business to business taxes and tack on some “middle class tax relief” by getting rid of the “Marriage Penalty”
We agree with the Governor and given the state budget surplus we think it’s great that he wants to repeal some of the taxes he signed into law last year. A billion dollar surplus in the wake of raising taxes over two billion dollars means that Minnesotans were overtaxed by a billion dollars.