Minnesota is one of just eight states to contribute more each year to Washington than it receives in federal aid.
WASHINGTON, D.C. – This week, Rep. Dean Phillips (MN-03) engaged in a whole-of-government strategy to call out systemic underinvestment and tax fairness in Minnesota, from advocacy at the White House to the House Transportation & Infrastructure. On balance, Minnesotans currently pays out more than $1.8 billion each year to federal coffers without seeing that money invested locally. Meanwhile states like Kentucky receive $63 billion morefrom D.C. than they share in federal taxes.
In light of this imbalance, Phillips announced his co-sponsorship of the Payer State Transparency Act, a bipartisan bill that would require yearly reports on the disparities in federal spending and taxation across American states. These disparities—which often manifest as higher taxes, higher government debt, and underdevelopment—have only grown more pronounced since the cap on the State and Local Tax (SALT) deduction was implemented in 2017.
“Minnesota is a high-tax state,” said Rep. Phillips, “and by investing in our communities, we have made our state a national leader in health care provision, quality education, parks, safety, a strong economy, and so much more. At a time when Washington should be encouraging local investment and long-term growth, we must come together and implement common-sense policies that ensure Minnesotan families aren’t more burdened than families on other states.”
After speaking to local leaders throughout last week’s district work period, Rep Phillips took additional action to return tax dollars to the Third District and ensure that Minnesotans don’t pay more than their fair share. Specifically, Phillips:
- Joined the Problem Solvers Caucus leadership team in a meeting with senior White House officials to have a constructive, bipartisan conversation about pressing issues facing Minnesota and our country — including infrastructure, police reform, and mental health.
- Testified before the House Committee on Transportation and Infrastructure, urging a comprehensive, transformative infrastructure package that restores Minnesota’s roads and bridges, modernizes its aging water system, and expands access to high-speed broadband.
- Reiterated his strong opposition to the $10,000 cap on the SALT deduction, which disproportionately impacts states like Minnesota that contribute more than they receive in federal aid, and has been particularly damaging for Minnesota’s Third District, where it has increased the tax liability of the average filer by $10,000.