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American Focus > Blog > Politics > Walz’ Minnesota Ranked Last for Fiscal Policy Out of All 50 States
Politics

Walz’ Minnesota Ranked Last for Fiscal Policy Out of All 50 States

Last updated: October 17, 2024 2:55 pm
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Walz’ Minnesota Ranked Last for Fiscal Policy Out of All 50 States
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A recent analysis of fiscal policy conducted by the libertarian Cato Institute has ranked all 50 states, with Iowa Governor Kim Reynolds’ state claiming the top spot and Minnesota Governor Tim Walz coming in last.

The report graded states based on spending, revenue, and taxes, with Iowa, Nebraska, West Virginia, Arkansas, South Dakota, Montana, Hawaii, Georgia, Idaho, and Vermont making up the top ten states in the rankings. On the other hand, New Mexico, Missouri, Oregon, Michigan, Wisconsin, Delaware, Washington, Maine, New York, and Minnesota rounded out the bottom ten states, with the bottom six states all receiving a grade of “F.”

Governor Walz’s poor rating has raised concerns, especially with the upcoming presidential election just weeks away. The report attributes his low score to a series of tax hikes implemented under his leadership, as well as a significant increase in spending by 36% since 2022, from approximately $52 billion to nearly $71 billion.

In 2019, Governor Walz proposed a budget that included $2 billion in new spending, with tax increases of $1.3 billion to cover the costs, in addition to utilizing an existing surplus. However, after negotiations with the legislature, the final tax increase amounted to about $330 million annually. Governor Walz also advocated for higher gas taxes and vehicle fees to generate approximately $1 billion annually for transportation, but these proposals were ultimately rejected.

In 2021, Governor Walz proposed further tax hikes, including a new individual income tax rate of 10.85%, a surtax on capital gains and dividends, and an increase in the corporate tax rate from 9.8% to 11.25%. These proposals, which aimed to raise around $1.6 billion annually, were also rejected by the legislature. Additionally, Governor Walz introduced HF 2887, which raised taxes and fees on vehicles and transportation, including indexing the gas tax for inflation, increasing vehicle registration taxes, raising fees on deliveries, and elevating sales taxes in the Twin Cities area.

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With the election drawing near, Governor Walz’s fiscal policies have come under scrutiny, especially as he and Vice Presidential Nominee Kamala Harris face a close race against former President Donald Trump and Senator J.D. Vance. It remains to be seen how these rankings and criticisms will impact the upcoming election.

TAGGED:fiscalMinnesotapolicyRankedstatesWalz
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