We're number 7!
Minnesota ranks 7 out of 50 in the just released Tax Foundation's ranking of tax freedom day among the state.
Too bad the study is ranking the worst states, which means Minnesota is 7th from the bottom. We also rank 7th worst in total state and local tax burden by capita, and 7th worst in state and local tax burden as a percentage of income. These statistics are for 2009, which means that the DFL meme that Minnesotan's don't pay enough taxes is simply a lie. We are well inside the top ten high tax states in the country already, without governor Dayton's proposal to give us the highest tax rate in the country.
So what did we score 43rd on? 43rd best on state business tax climate, as measured by corporate tax rate, income tax rate, sales tax rate, unemployment insurance tax rate, and property tax rate.
The whole push from the DFL over the last election cycle was that Minnesota was under taxed, rich Minnesotans especially, and that fairness demanded that we raise taxes on the rich to pay for all the important social programs for the poor and needy.
Aside from the nonsense of politicians trying to determine what is 'fair' for every income level to pay in taxes, the sheer folly of an already high tax state trying to present itself as a state that doesn't pay enough taxes would be amusing if it weren't so dangerous to the long term economic health of our state. The governor's budget assumes a 20% increase in the spending levels of Minnesota, based on a 20% increase in taxation levels in Minnesota. It's all fine in a class warfare debate to say 'yes but the rich can afford it', but the bottom line is the average taxes across all income levels in Minnesota is already too high.
The GOP insistence on no tax increases doesn't seem so radical when you actually consider the facts.