How does Minnesota compare to the other states on key economic measures? The Tax Foundation’s 2011 Facts and Figures has some interesting numbers.
The first number is Tax burden per capita, in which Minnesota ranks 7 ($4,651). The highest is Connecticut ($7,256). You might look at that number and say that government here spends too much. Or you might say we can spend so much because we have such a high income, and that when adjusted for income. But when we look atstate and local tax burden as a percentage of state income, we find that Minnesota ranks … 7, with 10.3 percent of income going to government. The state that spends the most of its income on government? New Jersey.
Gov. Dayton wants Minnesota’s high-income earners to pay more in income taxes. Yet Minnesota already relies a lot on the income tax: It ranks #5 on state individual income tax collections per capita.
Minnesota’s state corporate income tax rate is also among the highest in the country. At 9.8 percent, it trails only Iowa (10 percent for income over $100,000; 12 percent for income over $250,000) and Pennsylvania (9.99 percent). You may be surprised, though, to learn that Minnesota ranks a mere #34 on state corporate income tax collections per capita. Or maybe you shouldn’t be, if you consider that high income tax rates, all other things equal, discourage economic activity. Are we encouraging Minnesota businesses to expand elsewhere and discouraging those in other states from expanding here?
Despite having higher-than-average tax rates, Minnesota hasn’t been a “pay as you go” state. It ranks #18 on state and local debt per capita, meaning the state, more than the average state, is spending beyond its means.
There are many other numbers to ponder. Click here to read the publication.