“Walz Checks” Will Cause Inflation

Many legislators and interest groups call on Governor Tim Walz to give Minnesota’s $17.5 billion budget surplus back to taxpayers. The surplus is an apparent reflection of how overtaxed Minnesotans are. Our state has some of the highest tax rates in the country and we’ve charted a surplus for the last 9 years. At a time of record inflation, the money would be much better off in Minnesotans’ pockets.

Gov. Walz has a $17.5 billion surplus and is still raising taxes amidst rising inflation but thinks he is doing Minnesotans a favor by handing out “Walz Checks” for up to $2,000.

Walz’s “relief” checks,” a one-time rebate payment. $1,000 for single filers with a $75,000 salary limit and $2,000 for couples with a $150,000 limit. If Democrats gave back ALL of the $17.5 billion surplus, each taxpayer would get $6,000. Imagine that money in your bank account!

When the checks seem enticing and relief is much needed, research shows that these rebate checks will actually make inflation worse.

We saw this with the COVID-19 stimulus checks. A 2022 Fed survey found that the stimulus money boosted inflation by 2.6%. People did not save money, but instead went out and bought goods and services, driving up prices.

“Walz Checks” may provide immediate relief, but in the long run, we will not be better off. Pouring this money into the economy this way will increase costs and the rate of inflation at a higher rate than they would otherwise.

Gov. Walz has a $17.5 billion surplus and is still raising taxes amidst rising inflation but thinks he is doing Minnesotans a favor by handing out checks with his name on them. It turns out won’t end up how he intends.

If Gov. Walz and Legislators are serious about helping during these times they will cut our taxes. We must ask ourselves, how much more are we going to let them take?