For years, when business leaders warned that Minnesota’s economy was falling behind, defenders of the status quo waved away the data. They pointed to a common set of refrains: We have lots of Fortune 500 companies here, an educated and productive workforce and a good quality of life.
That debate is now over. From 2019 through 2025, Minnesota’s GDP per capita grew just 1% annually, ranking 38th nationally. Our labor-force growth is hardly any better, ranking 33rd in the nation. Over the past decade, Minnesota’s economy grew at 1.6% per year compared with 2.4% nationally.
These numbers demonstrate that Minnesota is losing ground to other states. We are not an economic wasteland, but we need change. The next governor must make economic growth the organizing principle of state government.
She should start by eliminating state income taxes on the first $50,000 earned by every Minnesotan. That would deliver thousands of dollars to working families, reward work and encourage young people to build their lives here.
The tax burdens on businesses should be reduced, too, but that relief should be focused on something Minnesotans can see: hiring. Create a simple payroll-tax credit for every net new job created in Minnesota. Help employers that hire Minnesotans.
And we should take other incremental steps to improve life for working people, like massively cutting tab fees. The double-digit increases Gov. Tim Walz and the DFL Legislature passed in 2023 were an absurd extra burden on Minnesotans — the type of action that leads people to question whether they should stay here. We should cut those fees by 75% or more, and instead fund our roads substantially through the normal budget process.





