Dayton's Unnecessary $2.1 Billion Tax Increase Yields Unnecessary Surplus

St. Paul- The Office of Minnesota Management and Budget (MMB) released the November Economic Forecast Thursday showing a $1.086 billion surplus for Fiscal Year 2014-15.  Governor Dayton and Democrats’ budget took $2.1 billion in new taxes from Minnesotans including taxes on internet purchases, farm equipment repairs, cigarettes and warehousing. The Republican majority’s Fiscal Year 2012-13 budget produced a surplus of $3.4 billion without raising taxes.

“Today’s $1 billion surplus cost hardworking taxpayers in Minnesota $2 billion,” said Senate Republican Leader David Hann (Eden Prairie). “The continued growth in the economy has resulted in higher revenues. This surplus calls into question the wisdom of burdening the economy with higher tax rates. When the session begins in February, we need to revisit the Democrat tax increases and fix their mistakes. They were clearly unnecessary."

Governor Mark Dayton and Democrats in the legislature increased spending by nearly 10 percent in their overall budget including millions of dollars for a new office building and salary increases for politicians. Meanwhile, according to the Department of Employment and Economic Development (DEED), 49 percent of Minnesota’s workforce remains underemployed.

“While Governor Dayton and Democrats celebrate taking more money they can waste, Minnesota moms and dads are working two to three jobs to pay for the cost of everyday life. Even worse, Minnesota families are weighed down by the uncertainty of health care costs and coverage as a result of Governor Dayton’s botched implementation of ObamaCare in Minnesota. While Governor Dayton and Democrats are here for themselves, Republicans are at the Capitol, fighting to protect hardworking taxpayers,” said House Republican Leader Kurt Daudt (Crown).

MMB will release an updated economic forecast in February 2014.