Creating a globally competitive state
Innovative and resilient Minnesota businesses are the backbone of the state’s recovering economy, and their generosity supports Minnesota’s rich cultural offerings. But past success does not guarantee future prosperity, and Minnesota’s tax code creates burdens and hazards that may hinder long-term economic growth. Policymakers should evaluate policy decisions with a global view, and attempt to address present-day challenges with solutions that will enhance Minnesota’s future position in the global economy.
Over the last decade, after a pair of recessions rocked the economy, Minnesota policymakers used various fiscal tools to address a series of budget deficits. Unfortunately, a lack of significant policy reforms resulted in state spending commitments that exceed economic growth projections, increasing the risk of future budget deficits. In addition to unsustainable spending trends, Minnesota has an antiquated and burdensome tax structure that forces Minnesota-based businesses to shoulder a heavy and growing load while they compete in a worldwide economy that rewards efficiency.
Reforms are necessary to position the state for greater economic growth and reduce the effect of economic shocks on the state budget. Without structural changes, Minnesota’s global competitiveness—and every Minnesotan’s quality of life—is at risk.
The 2021-22 Fiscal Policy Blueprint can be found here.
For more information, contact Fiscal Policy Director Jill Larson.