At $4 billion, Minnesota tax revenue just shy of quarterly projections
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- October 10, 2013 - 5:45 PM
Minnesota taxpayers contributed $4.08 billion to the state budget since July, about $2 million less than projected.
The state took in more from personal income taxes and sales taxes than budget officials predicted.
Minnesota workers contributed $2.1 billion in income taxes, about $27 million more than state officials projected. Consumers paid $1.1 billion in sales tax, about $46 million more than expected.
Corporate income taxes came in at $342 million, down $11 million from estimates. Other revenue accounted for $457 million, about $64 million below projections.
This the first budget snapshot since new tax hikes on high earners and a menu of sales taxes on business-related services kicked in.
State budget officials expected those new taxes to raise about $240 million in the first three months of the year. Actual tax collections for the quarter exceeded last year’s levels by $336 million, up 9 percent over the same period of the last fiscal year.
Democrats who control the Legislature said the revenue numbers are proof the state continues heading the right direction, noting strong recent job-creation numbers and high rankings from Forbes Magazine for the state's business climate.
"This news comes just as we are seeing other clear signs that Minnesota is continuing to make progress," said House Speaker Paul Thissen, DFL-Minneapolis. "Republicans seem so desperate for Minnesota's economy to fail that they are ignoring reality. If they are serious about improving Minnesota's economy they should be urging their counterparts in Washington to end the gridlock and get back to work. Right now the biggest threat to Minnesota's momentum is the current federal government shutdown forced by Republicans in Congress.
Republican said Minnesotans are just starting to see the fallout from the DFL-led tax increases of more than $2 billion.
The new DFL budget "forces hardworking taxpayers to pay more when they can least afford it for excessive government spending,” said GOP Rep. Jenifer Loon, a deputy House minority leader from Eden Prairie. “The simple fact is our state spending is far-outpacing our state’s economic growth.... The road to a healthier economy in Minnesota just got steeper."
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