The nation is learning more about the progressive—and even socialist record—of Democrat Minnesota Gov. Tim Walz. He's so progressive, Gov. Walz's own relatives refuse to vote for him. His liberal politics are no surprise to Iowans but nonetheless present a stark contrast to the economic freedom growing tall in the Hawkeye State.
Under the leadership of Gov. Walz and a Democrat-Farmer-Labor (DFL) legislature, Minnesota is being transformed into a California-style socialist state. This is the opposite of what is occurring in Iowa under the leadership of Gov. Kim Reynolds and its Republican-led legislature.
The two states and their politics are a microcosm of our national political divide, and they serve as the ultimate voter guide on the road to the White House. From a fiscal-policy standpoint, Gov. Walz is embracing the progressive tax-and-spend agenda of other “blue states,” such as California, New York, and Illinois, while Iowa is doing the opposite.
What’s more, Minnesota has some of the highest tax rates in the Midwest and, just as with other high-tax states, a mass exodus is taking place as families and businesses pack their bags for states friendlier to the pocketbook. While Iowa is lowering taxes, Minnesota is raising taxes. Overall, Gov. Walz and the DFL legislature increased taxes by $10 billion, a move that isn’t just hurting the economy.
Gov. Walz and the DFL legislature are also increasing the size and scope of government by increasing spending. The governor and DFL legislature exhausted an $18 billion budget surplus. A $1.5 billion deficit is looming as a result of unsustainable spending.
Moreover, he’s fully embraced the woke agenda. This includes support for abortion-on-demand until the moment of birth, signing off on so-called “gender transformation” operations for minors and allowing tampon dispensers in boys’ restrooms, among other things.
During the Black Lives Matter riots, Gov. Walz referred to the riots as “righteous anger” and allowed Minneapolis to burn and residents to suffer. Protestors were permitted to tear down a statue of Christopher Columbus on the grounds of the Minnesota state capitol.
He embraces illegal immigration by supporting sanctuary cities within Minnesota, and wants the state itself to become a sanctuary for illegal immigrants. State lawmakers even passed legislation doling out “free” college, healthcare, and driver’s licenses to illegal immigrants.
Other radical policies include the legalization of marijuana, radical education policies, and numerous allegations of fraud that—if true—will cost taxpayers millions.
Iowa seems like another world by comparison. Since 2018, Gov. Reynolds has made tax reform a priority. Iowa once had some of the highest income taxes in the nation. The income-tax rate in Iowa was close to 9 percent and the corporate tax rate was 12 percent, the highest in the nation.
Starting in 2025, however, Iowa will have a 3.8 percent flat tax and a corporate tax rate of 7.1 percent, which is scheduled to fall until it reaches a flat 5.5 percent. Gov. Reynolds also places a priority on conservative budgeting. The budget has been in surplus the past several years.
The surplus for Fiscal Year 2024 is projected to be $1.9 billion and the surplus for Fiscal Year 2025 is projected to be $2.4 billion. Iowa’s reserve accounts continue to be full at their statutory maximums and the Taxpayer Relief Fund has a $3.7 billion balance.
Gov. Reynolds is also reducing the size and scope of government. She signed into law the first major state-government reform law in 40 years, which consolidates cabinet agencies, along with state boards and commissions, among other reforms. She’s also fighting the woke agenda.
During the COVID pandemic, for example, Gov. Reynolds kept the economy and schools open, while Gov. Walz shut down Minnesota and even established a hotline for citizens to report one another for lockdown “violations.”
In Iowa, Gov. Reynolds and the legislature removed barriers to education by establishing a strong school-choice program based on Education Savings Accounts (ESAs), expanding open enrollment and charter schools.
Furthermore, the legislature has passed legislation fighting the woke agenda in education. After a series of legal challenges, Iowa’s heartbeat law now prevents most abortions, making it one of the most pro-life states in the country.
In the response to the failures of the Biden administration to secure the southern border and the growing threat of illegal immigration, Governor Reynolds dispatched Iowa police and National Guard to support Texas in its efforts to secure the border.
While Governor Walz seems to embrace the Chinese Communist Party and be even sympathetic to socialism, Gov. Reynolds has enacted legislation in response to growing concern over China’s attempt to purchase Iowa farmland.
Gov. Walz on the campaign trail refers to former President Donald Trump and Sen. J.D. Vance (R-OH) as “weird.” If “weird” reflects Iowa’s conservatism versus the radicalism of Gov. Walz, I'm with Gov. Walz's relatives and will take conservatism over socialism.
John Hendrickson is policy director for Iowans for Tax Relief Foundation.
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