Taxing Jeff Bezos more because he can afford to go to space won’t solve all our problems
If you are someone like me, you probably did not have a strong reaction to Jeff Bezos using his own money to go to space. However, for our politicians, the…
Taxes in Minnesota are hefty and burdensome – this is not news. But when looking at our state’s tax burden altogether, we’re top 10 in the nation. Yikes! Minnesota ranks high on income tax rates – both corporate and individual. Our corporate income tax rate is also one of the highest in the nation.
Recently, the Tax Foundation published a report analyzing state and local tax collections per capita by state. This to some extent measures the overall tax burden of state and local tax collections. And as you guessed it, Minnesota leads the country in that category as well.
In 2018, local and state tax collections in Minnesota were 9th highest in the nation. Minnesota ranked higher than 3 of its neighbors– Wisconsin, Iowa, and South Dakota–, and was only behind North Dakota. However, the tax burden is comparatively lower in North Dakota compared to Minnesota. This means that among its neighbors, Minnesota potentially imposes the highest tax burden per capita.
For example, even though North Dakota ranks third for state and local tax collections, the resource-rich state generates a substantial part of its tax revenue from severance taxes on oil and natural gas, which are borne mainly by consumers outside North Dakota. As a result, North Dakota joins the ranks of high-tax states in terms of per capita collections even though the tax burden on North Dakotans is comparatively low.