Tyler Schipper, an economics associate professor at the University of St. Thomas, spoke with KSTP about concerns over Minnesota’s shrinking workforce and its impact on the state’s tax base. Schipper said a declining workforce could put pressure on income tax revenue and leave lawmakers weighing tough choices, such as cutting spending or raising taxes, as the state faces longer-term economic uncertainty.
From the story:
“It’s very serious. They’re all very important things,” Tyler Schipper, an economics professor at the University of St. Thomas emphasized about the impacts of fewer workers on the tax base.
“How do you get people to come here, how do you get corporations to open up here and hire people?” he added about the challenges to reverse this trend.
Schipper also said states typically have a couple of options to address this issue – adjust the budget, which could lead to job and program cuts, and increase taxes.
Schipper noted the challenges lawmakers face. “That’s what makes legislature’s job really difficult,” he said, acknowledging the difficulty of avoiding a weakening workforce.
