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At the Center, we have long pointed out that Minnesota is one of the highest taxed states in America. But you don’t just have to take our word for it.
Last week, WCCO reported
On Thursday, finance website Kiplinger released its rankings of the best and worst states for taxes.
According to its 2018 Kiplinger Tax Map, the most tax-friendly states, from No. 1 to No. 10, include Alaska, Wyoming, South Dakota, Florida, Nevada, North Dakota, Delaware, Arizona, Mississippi and Louisiana.
As for the 10 least tax-friendly states, Minnesota tops the list. Following Minnesota is Maryland, New York, Illinois, Maine, Vermont, Hawaii, California, New Jerseyand Connecticut.
Kiplinger’s explanation of our rating is particularly interesting
As for Minnesota, Kiplinger says the state hits hard with its income tax.
“It added a new top income tax rate of 9.85% in 2013. But what makes Minnesota really stand out is that its lowest income tax rate is 5.35%,” the finance website said.
This is a point we have made before. It is not just ‘the rich’ who are hit hard with high taxes in Minnesota. Minnesota’s lowest income tax rate of 5.35 percent is higher than the highest tax rate in 23 other states.
“It’s important that Americans don’t overlook the impact of state and local taxes on their bottom line. Kiplinger.com’s Tax Map shows that tax rates literally are all over the map—and the difference between living in a high-tax or a low-tax state can be thousands of dollars each year,” said Robert Long, general manager of Kiplinger.com. “And the tax burden in many states will be even greater this year as lawmakers wrestle with how to adjust their tax codes to reflect the federal tax overhaul.”
Minnesota’s high tax rates are negatively impacting our state’s economic growth and standard of living. As the Kiplinger report makes clear, we need a change of direction.
John Phelan is an economist at the Center of the American Experiment.