Minnesota Governor Proposes Historic Sales Tax Cut and Spending Reductions

Minnesota Governor Tim Walz introduced his first budget proposal, aiming to lower the state's sales tax rate while addressing a projected multibillion-dollar deficit. His plan includes a historic reduction of 0.075% in the sales tax and expands it to some previously exempt services, countering potential tariffs from the incoming Trump administration that he argues would raise costs for residents. The budget faces criticism from Republican leaders who oppose any expansion of the sales tax, citing previous tax hikes under Democratic control. Meanwhile, other states are also pursuing income tax cuts; Kentucky and Mississippi are among those advancing legislation to reduce or eliminate their income taxes entirely. Indiana is poised to continue reducing its individual income tax rate, contingent on revenue growth. The broader trend of tax cuts reflects a growing movement among states to adjust fiscal policies in response to changing political landscapes.