STURGEON LAKE – A GOP congressman in northeast Minnesota is blasting the economic policies of Tim Walz, arguing that the governor’s economic efforts and COVID policies have been “devastating” for most Minnesotans.
“I’ve talked to a lot of businesses that either have left or when they expand are not expanding in Minnesota,” GOP Rep. Pete Stauber, who represents Minnesota’s 8th Congressional District, told Fox News Digital. “I mean, hundreds of millions of private investment are leaving Minnesota under Walz’s watch.”
“He’s supported the highest income tax rate in the nation at 10%, he has taken a $19 billion surplus and the next year added a $10 billion tax on the hardworking Minnesotans. He’s increased government spending by almost 50%. Very little growth in the private sector. I think if you look at North Dakota, South Dakota, Iowa, Wisconsin, our neighboring states are growing the private sector jobs three and four times more than Walz.”
The nonpartisan Tax Foundation’s State Business Tax Climate Index for 2024, which was published in October 2023, ranked Minnesota as having the 44th best tax climate for businesses in the country.
An analysis published by the left-leaning Institute on Taxation and Economic Policy in January found that Minnesota’s tax code was the most progressive of all 50 states, with only the District of Columbia having a more progressive one.
“You talk to Kristi Noem in South Dakota, she says one of the best things to happen for South Dakota was Walz becoming governor in Minnesota, they’re just leaving our state,” Stauber told Fox News Digital.
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The Minnesota Chamber of Commerce produced a 2023 state of business retention and expansion in Minnesota report that said, “While overall activity ticked up in Minnesota since 2021, the state consistently ranks near the bottom of Midwest states for new and expansion projects. Minnesota ranked 10th out of 12 states in the region in total projects from 2018 to 2022, and ranked 10th in projects per capita in 2022.”
“Data from fDi Markets shows that Minnesota based companies are expanding in other states at a higher rate than out-of-state companies are expanding in Minnesota,” the report stated. “Since 2020, Minnesota had a net investment deficit of 54 projects, 2,500 jobs and $6.6 billion in capital expenditures.”
The report did add, however, that “Minnesota’s corporate and financial sector expanded at a relatively fast pace over the past decade.”
“Minnesota is a recognized hub for corporate headquarters and industry-leading businesses… This professional and technical talent pool extends beyond just corporate headquarters, making Minnesota a conducive environment for companies in financial and professional/technical services as well.”
In a statement to Fox News Digital, Harris-Walz campaign spokesperson Charles Lutvak said, “After Donald Trump devastated our nation’s economy, Gov. Walz led Minnesota back with strong leadership, competent management, and smart policies – cutting taxes for working families and reaching the lowest state unemployment rate in recorded history.”
“That’s why CNBC ranked Minnesota the best state in the country for business outside of the south. Every day until November 5, Trump will have to defend his record of instability and unpopular anti-growth agenda against Team Harris-Walz’s record and vision to foster business growth, create jobs, and lower costs for the American people.”
Earlier this year, CNBC ranked Minnesota as the sixth-best state for business, which several Minnesota residents who spoke to Fox News Digital seemingly disagreed with.
“We joke that we’re mini California,” Matthew A., a Minnesota resident who owns a farm with his family raising corn and soybeans, recently told Fox News Digital.
“Most of us, if we could, we would annex into South Dakota. He’s put policies in place that have hurt small businesses. I have friends that have lost small businesses because of his policies. It’s killing our small towns, our rural development.”
The Cato Institute found this year that IRS migration data shows “the state is losing about ten households earning more than $200,000 for every six that it gains, which is the fifth worst ratio among the states.”
At the same time, Minnesota ranks 44th on the Tax Foundation’s business tax climate index, giving companies a strong incentive to invest elsewhere. To stem the outflow of skilled people and capital, Minnesota would need to adopt a leaner government and cut individual and business tax rates.
Stauber told Fox News Digital that Walz has led a “socialist crusade in Minnesota” and that voters should expect him to do the “same at the national level” as Kamala Harris’ running mate.
“You saw her do it as a senator from California, and you’ve seen Tim Walz do it as the governor in Minnesota, many, many devastating policies and legislation that he has signed that has not benefited the vast majority of Minnesotans.”
Former White House Council of Economic Advisers Chairman Kevin Hassett told FOX Business last week that Walz has a “disturbing” approach to economic policy and is “absolutely is a tax-and-spend liberal.”
Fox News Digital’s Aubrie Spady contributed to this report
