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Caveat: Hennepin County Taxpayers Will Pay More to Fund Met Council Vision for Trains

Hennepin County Commissioner Peter McLaughlin/Photo from Star Tribune.

The problem for Hennepin County and the cities in the county, is that the sales and other taxes are already quite high. Minneapolis is also promising to raise the minimum wage to $15 an hour, thus making the city an outlier and pariah for small and medium companies. Well, it will sort things out but not in favor of Minneapolis and Hennepin County. ...

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Legislature’s Special Session Wrap-Up: Estate Tax, Healthcare & More

OpeningMNHouseSession640_8

As I mentioned in my previous post, the Legislature ended its special session early Friday morning. Here's the rest of what was decided. Minnesotans On the Move How to keep Minnesotans from exiting the state for good, or severing all financial ties with the state after establishing residency elsewhere? Estate tax: The death tax was not repealed but the threshold will be gradually increased from the current $1.8 million to $3 million by 2020. The federal level is $5.49 million per person. Dayton's Department of Revenue has gained a reputation for being aggressive with Minnesotans who declare residency elsewhere (the state tries to claw them...

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Vetoed tax bill would focus tax relief on seniors, families, and small businesses

Tax

The House and Senate agreed to over $1 billion dollars in tax cuts last week, much of it focused on the middle class.  The largest chunk—nearly $220 million—went to cut taxes on social security income.   The bill also included substantial increases in subtractions and credits for expenses related to child care, education, scholarship program contributions, and student loans.  On the business side, the bill lowers statewide property taxes on businesses and, in particular, small businesses.  Credits for investments in research and development, as well as start-ups also get a boost.  Finally, the bill would also reduce the estate tax by...

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Dayton is vetoing good education legislation. We need your help.

dayton reading to kids

Dayton is pushing hard to gain more ground on expanding K-12 to become E-12, and making it normal for three and four-year-old tots to be in our schools. It is very easy to send an email to Gov. Dayton and legislators using the action alert. Your voice is critical in showing we have a strong network of supporters across the state....

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Connecticut’s Experience: Taxing the Rich Doesn’t Work

High-taxes

In recent decades, Connecticut has been much like Minnesota: an unabashed blue state that enacted liberal fiscal policies, secure in the conviction that it could collect endless amounts of money from its highest-earning taxpayers. But it hasn't turned out that way: "Income tax revenue collapses; Malloy says taxing the rich doesn’t work." Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years. It means the current budget year, which ends in just two months, is now seriously in the red and next year’s deficit has ballooned...

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Tax the rich? Done. Chase them from the State? Done.

tax the rich and corps

So what has Dayton done with billions in new revenue? “The net effect is still that under Dayton, Minnesota’s tax system has become meaningfully less regressive. But it should be said that this governor has taxed the rich in order to fund government, not to reduce the tax burden on others.” ...

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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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