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Minnesota Taxes and Tax Plans

taxes

State tax policy that prioritizes everyday Minnesotans can expand economic opportunity, build thriving communities, and strengthen our economic future. However, tax policy can also widen income, wealth, and racial inequality if it primarily benefits those who are already doing well in today's economy.

We analyze individual tax proposals and full tax plans from the governor and legislative bodies, as well as the tax system overall, emphasizing the impact on everyday Minnesotans, tax fairness, and the ability of the tax system to raise the revenues needed to sustainably fund public investments that keep us moving forward as a state.

Research

March 2010

Governor Pawlenty solves FY 2010-11 deficit using federal resources, cuts to services

2010 Legislative Session Starts Under Veil of Tension The 2010 Legislative Session began in a context full of tension....

October 2009

Tax changes in the 2009 Legislative Session: Propsoals, vetoes, and unallotment

The Legislature and Governor Pawlenty Disagreed on the Role of Taxes in Resolving the State's Budget Shortfall The...

July 2009

Surprise resolution to 2009 Legislative Session leaves long-term deficits

The 2009 Legislative Session ended in May with the job only partially done. Legislators and Governor Pawlenty spent the session attempting to negotiate a solution to a $4.6 billion state budget deficit for the FY 2010-11 biennium. As the legislature reached the constitutionally prescribed adjournment date on May 18, a $2.7 billion deficit still remained. After the session concluded with no negotiated agreement, the Governor exerted his authority to unilaterally “unallot” spending to resolve the remaining deficit and bring the budget into balance.

In the end, the FY 2010-11 budget deficit was resolved using a combination of spending reductions and one-time budget-balancing measures. The decision to rely heavily on one-time measures to fix the current deficit will have long-term implications as Minnesota is facing persistent budget deficits.

This analysis begins with a brief overview of the major elements of the solution to the FY 2010-11 budget deficit, then goes into greater detail to explain the budget proposals from the Governor, House, and Senate, and the final decisions that were reached.

May 2009

Few small business owners would be impacted by income tax increase on high-income households

No business or individual alone can provide for an educated workforce or safe roads and bridges. Taxes pay for these...

Taxes and Tax Plans Blog Posts

August 10, 2020

Minnesota expecting continued revenue shortfalls; time for strong federal action

July brought us more sobering news about the ongoing damage that COVID-19 is expected to have on the economy, and by extension the state’s budget.

June 15, 2020

Special session begins; Minnesotans call for bold action

The COVID-19 crisis, and the longstanding crises in policing and racial inequity in Minnesota, have damaged our health, livelihoods, and communities. Policymakers must take bold steps to better ensure Minnesotans can stay healthy, safe, and get by economically in the immediate term, and invest in resilience in all communities for the future.

May 01, 2020

Bold action needed to get through crisis, build equitable recovery

Minnesotans are doing their part. We must be able to count on Minnesota policymakers to continue to take aggressive action to meet the public health and economic security needs of everyday Minnesotans, and to draw on the resources needed to do so.

June 24, 2019

Final tax plan boosts tax credits for working Minnesotans, but falls short on future stability

The 2019 tax bill agreed to by Governor Tim Walz and the Minnesota Legislature in the recently completed special legisla...