Abolish Minnesota’s estate tax

Preview:

This policy briefing argues that state policymakers should abolish Minnesota’s estate tax.

Minnesota imposes one of the heaviest estate taxes in the United States. Even so, it accounts for a miniscule share of the state’s total tax revenues: 0.6 percent in 2020 and not more than 0.9 percent in any year since 1974.

Against this, it imposes some very real costs. People move to avoid paying the estate tax and when they do they take future payments of other taxes with them. Evidence suggests that the revenue costs of Minnesota’s estate tax outweigh its benefits.

A full copy of the policy briefing can be viewed here.