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Eliot Seide’s Foolish Take on High Minnesota Taxes

0 JH RedMinnesota87

I give Eliot Seide, Minnesota’s leading public employee union boss, credit for his clever Star Tribune column (“OK, it’s a drag, but think what your taxes do”) that painted all the joys of paying high Minnesota taxes on the eve of tax day.  Those foolish Tea Party protesters should be grateful for the opportunity, otherwise imagine the horrors of living without clean water, indoor plumbing, highway lines and lights, the sense of community provided by public transit, teachers, bus drivers, lunchroom staff, librarians, state parks, walleye-stocked lakes, a safety net for the less fortunate, and Meals on Wheels. The logic of Seide’s...

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It’s tax day: Minnesota, a land of progressivity

pigs trough

Minnesotans pay the second highest amount among the state, $14,624 per capita, in federal taxes after Delaware. And it is not just because the women are strong and the men are good looking. It is because high-income Americans pay the majority of federal taxes, while others consume them. The national average per capita amount is $8,943. What do we get back in federal dollars? Not much. ...

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Minnesota May Lose a Congressional Seat. But Why?

The Star Tribune reports on something that has been in the wind for a while: Minnesota may lose a congressional seat following the 2020 census. Currently, Minnesota has eight congressional districts. That number may fall to seven: Minnesota is facing the risk of losing one of its congressional seats after the next census amid booming population gains elsewhere in the country, a rare event that could diminish the state’s voice in Washington. Based on current population trends, this map shows anticipated gains and losses among the states. Note that none of the states bordering Minnesota is projected to lose a seat: The Strib...

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A Competition For “Tax Fairness”? That’s Delusional

High-taxes

In yesterday's Star Tribune, the paper's editorial board hailed a recent study that found Minnesota's state and local taxes are distributed nearly equally across all income categories. Minnesotans, the study found, generally pay around 12% of their incomes in such taxes. The Strib's editorial board thinks this is terrific, and credits the tax increase that Governor Dayton and the then-Democratic legislature pushed through in 2013. Of course, the Strib acknowledges that "tax fairness" comes at a price: Some Minnesotans are bound to argue that flattening the “tax incidence curve” has been undesirable. It undoubtedly came at a competitive cost among those...

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Ho, Ho, Ho: $300,000 in Taxpayer Funds for Jolly Green Giant Museum

Statute

It’s the closest thing to handing government a blank check. The passage of a three-eighths cent statewide sales tax increase in  the Clean Water, Land and Legacy Amendment in 2008 gives lawmakers hundreds of millions of dollars that must be spent every biennium by law. This session lawmakers will hand out $527 million raised by the sales tax. Most of the windfall goes to water, parks, trails and assorted environmental projects. The remainder--$127 million this session--goes to arts and cultural heritage groups around the state. The laundry list of lucky winners unanimously approved this week in the Minnesota House includes $3.2 million...

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Tax Credits For Student Loan Payments? A Terrible Idea

Bad-Idea

The tax bills wending their way through Minnesota's House and Senate include mostly good (although not very bold) provisions, with a few clinkers mixed in, like the subsidy for shrimp producers. SF 941 is an especially poor idea: Student Loan Tax Credits | SF 941 Student debt is a major concern for students, graduates, and their families. This bill would allow tax filers to claim a credit for payments on their student loan debt, which could result in net savings of $37.3 million in 2018 and $38.1 million in 2019 for hard-working Minnesota taxpayers. "A net savings...

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Minnesota Ranks In the Top Five!

High-taxes

In taxes, that is. That's right: Minnesota is one of the five highest-tax states in the country. This ad is playing on radio stations around the state, in anticipation of Tax Day: . [audio mp3="https://2lffqo2moysixpyb349z0bj6-wpengine.netdna-ssl.com/wp-content/uploads/2017/03/High-Taxes_mixdown.mp3"][/audio] . It is great to rank near the top, but not when it comes to taxes. Minnesotans are overtaxed, and that is one reason why the state's economic performance has been mediocre and trending downward during the current century....

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Understanding the New Tax Plan America Needs

0 PZ beautiful-green-tree

Respected economist Lawrence Lindsey has written a piece in the Weekly Standard that explains why the House Republican tax plan “is exactly targeted at the economic ills that afflict our country.”  First he establishes that the American economy really is sick: “From 2011-2016 we observed the poorest economic expansion on record.” “Barak Obama was the first president without a year of 3 percent real GDP growth while in office.” “[F]rom 2011-2016, annual growth averaged more than a full point less than growth from 1965-2010, a period that includes drag from multiple recessions.” “[G]rowth in real personal incomes and wages lagged behind the long-term historic...

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Why Are Minnesotans So Overtaxed?

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This map, produced by the Tax Foundation, shows the top individual income tax rate for each state. You will note that Minnesota is essentially tied with Oregon for the third-highest rate, at 9.85%. Click to enlarge: Why are Minnesota's income taxes so high? It isn't as though we are getting a break on other taxes. We have a high sales tax (which does, of course, exempt food and clothing), high property taxes and a high corporate income tax. Why can't Minnesota's government get along on a reasonable budget like nearly every other state? When anyone proposes cutting taxes in Minnesota, liberals generally...

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New report pinpoints several aspects of state tax code that challenge Minnesota’s competitiveness

mn-illustrated

This week the Tax Foundation, in collaboration with the Minnesota Business Partnership, released Minnesota Illustrated: A Visual Guide to Taxes & the Economy.  The guide provides a chart book that illustrates how Minnesota’s economy and tax system compare to the rest of the country, paying particular attention to Midwestern peer states. This is the latest in series of chart books that the Tax Foundation has created for various states.  The primary goal for each book is “to help readers understand [the state’s] overall economy and tax system from a broad perspective.” Regarding Minnesota’s economy, the chart book is the latest in growing...

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