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See how the federal tax cut impacted you. Then remember that Gov. Dayton’s veto likely means your taxes going up anyway

Next year Minnesotans will have to fill out a 2018 federal income tax form, a Minnesota-only tax form based on the old federal tax code, and a Minnesota tax form. An estimated 800,000 Minnesotans are expected to end up paying up to $850 million in extra taxes. But, they can look at the Tax Foundation's calculator and think about what might have been. ...

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Minneapolis Property Owners Winning War With Tax Assessor

Homeowners' complaints over inflated property valuations by Minneapolis tax assessors have paid off for the vast majority who took on the city. Hundreds of residents have received write-downs after challenging the city's huge increases in their property assessments, according to the Star Tribune's numbers. City assessors and the board that handles appeals have spent the past month scrambling to respond to the 1,400 property owners who said the city tax assessor had bungled the valuation of their real estate. The board approved changes on 1,144 of those properties, or about 82 percent of official appeals, according to data released by the...

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What is in the big $1.5 billion bonding and public works bill? A new pool for New Hope

Why are state taxpayers giving New Hope a $2 million “grant” for a pool? We recently helped Golden Valley put in a new clubhouse for its Brookview Golf Course. Huh. Cities are free to offer amenities, though honestly golf courses are a hole too far for me. But at least local voters can keep an eye on the city council and bounce officials if they are not being fiscally responsible. OK, it is a theory, I know. But why are state taxpayers asked to help with local projects? ...

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Minnesota ranks 6th nationally for per capita state and local income taxes

It is no secret that Minnesota is one of the most highly taxed states in the union. We are one of the 43 states to have its own income tax, but the top rate—9.850 percent on incomes over $156,911—is higher than anywhere else apart from California, Maine, and Oregon. But it isn't just 'the rich' who are hit with these high rates. Minnesota’s lowest income tax rate of 5.35 percent is higher than the highest tax rate in 23 states. New data from the Tax Foundation shows how we compare nationally. In fiscal year 2015, our state ranked 6th nationwide for the amount of...

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Milton Friedman on corporate taxes

All too often, the policy debates of today are simply refights of the battles of yesteryear. Because of this, old arguments often retain a modern relevance. Milton Friedman was an economist with a rare gift for translating technical arguments into clear prose (as you will find in his books Capitalism and Freedom and Free to Choose). In a week when Gov. Mark Dayton vetoed a tax bill because it supposedly “put powerful special interests, multinational corporations, and the rich ahead of Minnesota schoolkids and families,” here is Friedman in a Newsweek column from November 1971 explaining why that argument was wrong then and is...

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Minnesota’s Mr. Wrong: Gov. Dayton’s Math and Reasons for Vetoing Tax Bill Don’t Hold Water

Mark Haveman, our friend who runs the Minnesota Center for Fiscal Excellence, penned a brilliant op-ed in today’s Star Tribune that blows up Gov. Dayton’s stated main reason for vetoing the 2018 tax bill. Haveman devastated Dayton’s main criticism that “misguided priorities for corporations” emphasize “tax cuts for corporations over real people.” For starters, the claim of excessively favorable treatment of corporations doesn’t match the reported numbers. Conforming to the federal government’s broadening of the corporate tax base actually exposes more Minnesota corporate income to the state’s tax rates. According to nonpartisan legislative staff, the vetoed tax bill was projected to increase...

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