Are Minnesota’s Taxes Evil?

Published On: 23rd June 2014

From the internet

So one Minneapolis homeowner looks at another Minneapolis homeowner’s yard and they wonder why their lawn looks so great. They want to know what they’re using to be deemed the best lawn in the neighborhood. So what does the neighbor with the not-so-great lawn do? He walks over to the owners of the pristine yard and simply asks.

He finds out that there is a specific product that is being used. Before this neighbor revealed the secret, the homeowner never dreamed of buying something for his lawn. However, the sad state of it simply gave him the desire to find out what he could do to make his stand out a bit less for its ugliness and more for its beauty…or at least blend in.

Minnesota is the neighbor with the beautiful yard and its neighbors are wondering how they can make their yards look great. It turns out that taxes have a great deal to do with why Minnesota is shining and other states aren’t. For the longest time, Minnesota was considered to have an “evil tax” because of tax increases, but the latest tax cuts are allowing the state to give back to the middle class and cut other types of taxes.

Minnesota is unique in the Great Lakes region. It is a high-tax, high-spending state and it has proven that investing in education and infrastructure seems to be helping the economy rather than hurting it. This has neighboring states wanting to know what they are doing to make the high-tax, high-spend model work.

The states that are wondering are those that have the dull yards and it has a lot to do with their tax and spend policies being the complete opposite of Minnesota’s.

Minnesota has a progressive income tax that maxes out above 9 percent. It has a higher sales tax and it allows local governments to add on to that sales tax. The gasoline tax is higher and it applies sales tax to some services.

Minnesota also spends more than neighboring states on education, social services, and infrastructure. However, it spends less on corrections. Minnesota shares a great deal of its revenue with cities and it encourages regional governments to cooperate with them rather than stand on their own.

After the recession, Minnesota had to find a way to rebuild. It looked at tax increases a number of times in a number of ways in order to shore up services, infrastructure, and education. Other states have cut their spending a lot in important areas as they slash business taxes.

Overall, studies have shown that Minnesota’s recovery is moving along much faster than some of its neighbors. Unemployment is even lower, while income is higher. The poverty rates are also lower and school and university funding are even. People aren’t driving horrible roads that suffer from neglect due to lack of funding.

It can be hard to compare states because of the differences in demographics, but the results are rather clear in this case. That means the grass is certainly greener in Minnesota, despite its policies that could make lawmakers in other cities cringe.