MINNEAPOLIS, MN —The Minneapolis Regional Chamber of Commerce released the results of a study earlier this month showing Minneapolis generated 3.5 times more in tax revenue for the State than it received in aid in 2017.
The report, which was compiled by local research firm MacCallum Ross, showed Minneapolis paid out $1.97 billion in taxes, while receiving $536 million in aids, a minus $1.43 billion balance.
Though the statistics were from 2017, the Chamber noted the numbers reflected a larger trend. In 2016, the seven county Metro region (minus $3.46 billion) and Hennepin County (minus $2.45 billion) also had negative balances. The report shows these negative balances have been consistent for 16 years.
“Minnesota has an interconnected economy, where all regions contribute to and support the success of one another,” said Jonathan Weinhagen, president and CEO of the Minnesota Regional Chamber of Commerce. “However, the data in this report makes it clear that, from a revenue perspective those contributions are not equivalent.”
Weinhagen continued: “Minneapolis pays more than 3.5 times in taxes to the State than it receives in aid payments. We are hopeful that this data-based report will provide useful information to policymakers as they consider investments in support of small businesses in Minneapolis.”
According to Bring Me The News.com, the report comes as lawmakers at the state Capitol are debating proposals, one for $300 million, to provide aid to the Twin Cities to help businesses damaged in last summer’s civil unrest following the death of George Floyd.
Republicans have criticized the amount, and said state tax dollars should not be used for what they describe as a bail out for Minneapolis and St. Paul.
Weinhagen disagrees with that sentiment, and points to the Chamber’s report as proof that Minneapolis contributes more than its fair share to the State.
“The notion that the rest of the state is ‘bailing out’ Minneapolis is inaccurate,” Weinhagen said. “To recover from the current economic downturn, Minneapolis needs a strong Minnesota and Minnesota needs a strong Minneapolis.”