Minnesota's tax rankings hover around average

Today Growth and Justice and the Minnesota Budget Project sent out a joint press release on new U.S. Census figures on state taxes and expenditures. Minnesota ranks as a near-average state – 19th – in total state and local taxes, measured as a percentage of income for Fiscal Year 2006. Minnesota is not a high tax state. This is actually old news – our ranking has been around 19th for several years now.

And what’s more, we’re below-average when it comes to total public-sector investment in the state. That’s right, I said below-average. Minnesota ranks 32nd among states using a more comprehensive measure of the size of state and local government that includes all sources of funding – taxes plus all other sources of revenue, such as federal aid and tuition at public colleges and universities. This decline in public investment will (or has) hurt our quality of life.

I’d be happy to share additional numbers I’ve crunched – just send me an e-mail: katherine@mncn.org

-Katherine Blauvelt

About Katherine Blauvelt

Katherine Blauvelt served as the Minnesota Budget Project’s policy analyst from 2007 to 2009.
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2 Responses to Minnesota's tax rankings hover around average

  1. Katherine Blauvelt says:

    Why is there the perception that we are a high tax state? It may in part be a case of my opinion vs. your opinion on what constitutes a high tax state – my opinion of what is ‘high’ taxes may differ from yours. And in part it’s what statistics are used. For example, if you only look at state taxes Minnesota is ranked relatively high – but that’s mainly because Minnesota chooses to fund functions like education and the courts with state taxes rather than local taxes. So that statistic doesn’t give the whole picture.

    One can hope that folks will give up the ghost of Minnesota as a high tax state – it’s simply not the case anymore when it comes to total local and state taxes.

  2. norm hanson says:

    Interesting and old information as well, as you noted. On the other hand, the perception by many citizens is that Minnesota taxes are at or near the top of the states. As a result, the current governor has been very successful in the use of his “no new taxes” pledge as a justification for many of his vetoes and other policy decisions. Are folks comparing apples and oranges here? Other?


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