State revenue outpaced projections last two months
April 10, 2013 — 6:51pm
State revenue outpaced projections for February and March, resulting in $145 million more money than expected.
Residents paid $1.2 billion in income tax, about $57 million more than projected. Sales tax revenue was up as well, coming in at $706 million, $22 million more than expected. The highly volatile corporate income taxes was up, too, Corporations paid 18 percent more than estimated, totaling $307 million.
Minnesota Management and Budget officials estimate that consumer wages were up 9 percent in the last quarter of 2012 from the same period the year before. Budget officials believe some of that growth was due to high earners trying to get wages, bonuses and other incentives before higher tax rates kicked in this year.
Economists say the economy is stronger than expected, but the impacts of automatic cuts in Washington, sluggish employment growth and concerns about consumer spending are holding back more robust growth.
Gov. Mark Dayton, speaking to a mostly Republican audience at the annual Minnesota Business Partnership dinner, repeated his familiar attack on the House GOP, blaming them for a legislative impasse on transportation.
In a relentlessly antagonistic debate, Clinton denounced Trump for keeping his business dealings secret and peddling a "racist lie" about Obama. He cast her as a "typical politician" as he sought to capitalize on Americans' frustration.
Kansas saw its tax collections fall $10 million short of expectations in August, and Republican Gov. Sam Brownback is blaming a soft economy even as his critics make his tax-cutting policies a key issue in this year's elections.
Kansas' tax collections fell nearly $13 million short of expectations in July, and the report of the shortfall Monday came on the eve of a primary election in which Republican Gov. Sam Brownback's critics hoped to oust some of his legislative allies.