March 7, 2023
State Spotlight: American Experiment Encourages Minnesota Lawmakers to Give Surplus Back to Taxpayers
You buy something that costs $15.
You hand the checkout clerk a $20 bill.
You expect to get change.
But if the store operated like a government, the checkout clerk would keep your extra $5 and start telling you about all the great things they want to spend your money on.
This is how Minnesota’s state government is treating taxpayers.
Minnesota’s tax rates are the sixth highest in the country, the state’s savings account is at an all-time high, and Minnesota school districts, cities, counties, and the state all received billions in federal aid during the pandemic. All this led to a record $9.3 billion surplus in FY2022-23.
When the budget numbers showing Minnesota’s surplus were released in early 2022, the governor and many members of the Minnesota state legislature began dreaming up new spending and programs. But Minnesotans deserve tax relief. So, the team at the Center for the American Experiment got to work on their campaign to use Minnesota’s surplus to deliver Minnesota taxpayers permanent tax relief.
According to the Minnesota Star Tribune, when Minnesota’s budget numbers were released “Gov. Tim Walz said the larger surplus means he could triple the size of his proposal to give direct rebate checks to Minnesotans. He suggested giving $500 to individuals and $1,000 to couples. […] The governor also urged lawmakers to approve $2.7 billion to replenish the state’s unemployment insurance trust fund and $1 billion for workers on the front lines of the COVID-19 pandemic.”
But as John Phelan, American Experiment’s economist, argued, surplus money belongs to taxpayers and should be returned to taxpayers:
“We believe that this money should be given back to—or more accurately, left with—the people who earned it: ordinary, hardworking Minnesotans. We believe this should be done in the form of permanent tax cuts. And we believe that this surplus represents an opportunity to move our state’s taxes in a decisively pro-growth direction.
“Minnesota’s state government is already spending near record amounts, adjusted for inflation and in per capita terms. This should rule out using the surplus to fund even higher government spending. Minnesotans are [also] some of the most heavily taxed citizens in the United States [and] needless complexities in Minnesota’s tax system increase its burden. This heavy tax burden slows economic growth in our state [and] leads to losses of residents to other states. For these reasons, the surplus should be taken as an opportunity to cut and simplify taxes on Minnesotans.”
A major part of American Experiment’s campaign was winning over the public’s opinion. Minnesota legislators often tell the American Experiment team that they agree with many American Experiment proposals, but don’t know if certain policies will fly with voters. This means that the best way to change a legislator’s mind is to change the public’s mind.
To win the fight for public opinion, American Experiment released an in-depth research report titled “It’s our surplus, give it back” which provided the data necessary to push for permanent tax cuts.
Then American Experiment’s team utilized that data by:
American Experiment also launched the landing page GiveItBackMN.com, where Minnesotans could quickly send emails or video messages to Governor Tim Walz and legislators. This resulted in over 33,000 emails, over 500 tweets, and over 100 video messages being sent to the governor and legislators.
Finally, American Experiment’s campaign culminated with a rally at the Minnesota State Capitol on April 23, as the legislative session neared its climax. Hundreds of people attended to show their support for tax cuts. Featured speakers included members of the American Experiment team, former U.S. Representative Jason Lewis and some of Minnesota’s top radio personalities.
In December 2021, American Experiment conducted a poll asking Minnesotans what should be done with the state’s budget surplus and 24% of respondents thought permanent tax cuts were the best option. In May, at the end of their campaign, American Experiment conducted a follow-up poll, and respondents favoring permanent tax cuts had jumped to 35%.
Today, Minnesota’s budget surplus has ballooned to $17.6 billion. And while the fight for permanent tax cuts continues, thanks to American Experiment’s far-reaching campaign, more Minnesotans are calling for the tax relief they deserve—and the state needs.
