Tim Walz waves the white flag

The competition between Minnesota and its neighboring states (think Iowa and North Dakota) ended when Minnesota's DFL Governor Tim Walz agreed with his DFL co-conspirators in the House and Senate on budget targets that will spend most of Minnesota's projected surplus rather than making Minnesota's tax system more competitive with its neighbors.

According to Alpha News, "Minnesota lawmakers agreed to spend an additional $17.9 billion on top of the base budget of $52.4 billion, likely depleting the state’s current $17.2 billion surplus. The target includes $3 billion in tax breaks but doesn’t specify how relief will be delivered. Gov. Tim Walz, Senate Majority Leader Kari Dziedzic, and House Speaker Melissa Hortman said they reached budget target numbers that include investments for kids and families, the largest tax cut in state history, and funding to improve health and safety."

Noticeably missing from the targets is long-term tax reform. That guarantees Minnesota having the least competitive tax system in the Upper Midwest other than Illinois. North Dakota's tax system is attracting investors like Kevin O'Leary daily. Iowa will likely join O'Leary's "go-to" list of states to invest in. Here's what's attracting investors:

By spending most of their projected surplus, Minnesota just told big-time investors that replenishing the campaign slush funds for their special interest allies is more important than putting together a competitive tax system within Minnesota. Twenty-five years ago, Fargo had a population of 50,000 people. Today, its population is 260,000 people. Twenty-five years ago, Moorhead's population was also 50,000. Today, Moorhead's population is 30,000. Minnesota's tax system punishes successful people. North Dakota's system rewards successful people.

Minnesota's policies used to be sensible. Then Education Minnesota and the environmentalists took over the DFL. The DFL became the home of socialist policies. Minnesota used to brag about having a great education system. Minnesota spends tons of money on education but the achievement gap keeps widening.

Minnesota has locked up its natural resources, aka PolyMet and Twin Metals mining projects. North Dakota didn't hesitate in unlocking their natural resources, aka the Bakken. That's led to a declining economic outlook for Minnesota and a limitless outlook in North Dakota.

Thanks to Iowa's tax reforms and their passing of school choice initiatives will soon jump Iowa ahead of Minnesota. Minnesota's socialist policies have Minnesota the least competitive state in the Midwest. Thanks to the DFL, that won't change anytime soon.

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