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Tax Foundation report finds business taxes in Minnesota are among the least competitive

The Tax Foundation released their 2017 State Business Tax Climate Index today and, as usual, Minnesota ranks very poorly.  The state ranks 46th overall.  Looking to specific categories, Minnesota ranks 43rd for corporate tax, 45th for individual income tax, 25th for sales tax rate, 28th for unemployment insurance tax, and 33rd for property tax. Minnesota’s bottom-of-the-barrel ranking shows the state’s tax system is one of the least competitive in the country.  Competitiveness is exactly what the index aims to measure.  As the report explains: The modern market is characterized by mobile capital and labor, with all types of businesses, small and large, tending to locate where...

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A Minimum Wage Fable by Mark Perry

[caption id="attachment_4700" align="alignleft" width="229"] Dr. Mark Perry spoke at American Experiment's BIG minimum wage debate that drew over 200 people.[/caption] [This is a great post from Dr. Perry's Carpe Diem blog.] [The full 60 min. audio from American Experiment's BIG minimum wage debate with Sen. John Marty, Dan McElroy, and Dr. Perry is available here.] Consider an imaginary economy with two types of workers: two-armed and one-armed. Two-armed workers are the large majority, while the one-armed workers are a small minority. For most manual tasks and some service-related jobs, suppose the one-armed workers are realistically less productive than their two-armed counterparts for: a)...

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Affordable Housing? Not For Twin Cities Families

The Metropolitan Council—the Twin Cities area’s regional government—has been telling us for years that we’ve got to change the way we live. “Thrive MSP 2040,” the council’s 30-year development plan, is intended to remake our region around transit; move us into high-density, “stack and pack” housing along fixed-rail lines; deplete road funding; and wean us out of our cars so we walk, bike or take public transit to work and leisure activities. But today’s Star Tribune provides powerful evidence that people here generally don’t want to live that way. The Met Council is pressuring the region’s municipalities to densify, but home builders...

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Once Again, Star Tribune Cheers Mediocre Performance

We Minnesotans have a habit of patting ourselves on the back for performance that is, at best, average. Our local press, especially the Minneapolis Star Tribune, encourages this form of self-deception. A case in point was an article in today's Strib business section headlined Twin Cities economy posts solid gain in 2015. The boosterish article, by Adam Belz, was based on a release of data by the Bureau of Economic Analysis on economic growth by metropolitan area: The Twin Cities economy grew steadily in 2015, setting a pace that’s better than average and keeping Minneapolis-St. Paul in its spot as the...

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Mark Perry’s remarks at American Experiment’s minimum wage forum

Update: Minnesota Public Radio covered the event, listen to its report here: “How would $15 minimum wage affect workers?” Thanks to the Center for the American Experiment for the opportunity to participate today. As a native of the Twin Cities, I feel especially fortunate to be here. What’s not so fortunate is that we’re here debating a topic that has actually been settled science in economics for several hundred years. Generally, the first thing we teach on the first day of Econ 101 is that if you raise the price of a good or service, you’ll reduce the demand for that...

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What’s Happened to Minnesota’s Entrepreneurial Spirit?

In the Minneapolis Star Tribune, Dileep Rao, a professor of finance, bemoans the fact that Minnesota is no longer producing the cutting-edge, rapidly growing companies that once fueled the state's economy: Glen Taylor built Taylor Corp. into the country's largest wedding-invitation printer. Earl Bakken built Medtronic into the world's largest electronic medical-device company and founded the medical electronics industry. Bob Kierlin built Fastenal into the country's largest fastener company and one of the best stocks on U.S. stock exchanges. Dick Schulze built Best Buy into the world's largest electronics retailer. And Richard Burke built UnitedHealth Group into the world's largest health...

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Not Even One Minnesota Business Makes Fortune’s 100 Fastest-Growing Companies List

Fortune just published the 30th edition of their Fastest-Growing Companies list, the annual who’s who of hot publicly-traded companies and industries across the nation and world. In their review of the list, the magazine offered a few highlights.  First, the “roster now reflects the rise of small banks and other financial institutions.”  Second, not only does finance represent the most companies, but these companies are geographical dispersed across the country.  Florida, Georgia, and Arkansas are each home to more fast-growing finance companies than New York.  Third, more of fastest growing businesses in California—the state with the largest number of businesses on...

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Duluth City Council Rejects Anti-Mining Measure

No one blinks anymore when activist city councils pass kooky or feel-good resolutions on the politically correct issue du jour. Potholes, garbage collection and other consequential, but mundane issues should hardly distract local pols from what really matters. So Richmond, California, councilors pass a resolution to ban the threat of space-based weapons. And Minneapolis and St. Paul join Seattle as the only cities supporting “indigenous opponents” of the Dakota Access Pipeline, citing the Battle of the Greasy Grass and Custer’s Last Stand in the process. But a funny thing happened this week when a trifecta of Duluth City Councilors tried to pass an...

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Why the Minimum Wage Is a Bad Idea

In anticipation of our dialogue on the minimum wage that will take place on Tuesday, I recorded a three-minute segment on the issue with the Rookie, Matt Michalski, on KSTP radio. The segment played yesterday. Here it is; I think it is a pretty good short explanation of why a high minimum wage (higher than employers are already paying to entry level employees) is unfair to young people; If you haven't been hearing our Monday segments with the Rookie on AM1500, as well as the 30-second ads we have every day on the Joe Soucheray show, you should start listening for...

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Southwest Light Rail: An Expensive Mistake

Lots of alarm has been coming from the Star Tribune editorial page during the past few weeks, regarding the Southwest light rail project. The Strib is fretting over the possibility of losing “free” federal money for the project, and charges opponents with a short-sighted failure of vision. But in the desperate pursuit of the “free” $928 million from Washington, no one mentions the hefty operating costs (starting at $32 million and reaching $58 million a year by 2040) we will be locking ourselves into. The Star Tribune is worried about the $140 million already spent on the project, but better to...

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