Archive for March 2016

Wage Theft in Minnesota

Wage theft is a serious issue affecting the entire nation, including Minnesota. Millions of American workers have had their wages stolen by their employers, and according to a report from the Department of Labor, wage theft disproportionately affects low-wage workers. The Department of Labor found that minimum wage violations (wage theft for minimum wage workers),…

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Majority of Business Tax Break Leaves Minnesota

The elimination of state business property tax is projected to reduce state revenue by nearly $1.9 billion by the time it is fully phased-in. However, the amount of net tax relief received by Minnesotans will only be about $0.9 billion. What happened to the missing $1.0 billion? It will be exported to out-of-state taxpayers or…

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No Evidence Taxes are Driving People Out

A new report from the right wing Center of the American Experiment (CAE) contends that Minnesotans are leaving the state in droves—a phenomenon referred to as “income migration.” The culprit—according to the report—are those hateful Minnesota taxes. A recent post from the Minnesota Budget Project points out that the data used in the CAE report…

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Drinking the Supply-Side Kool-Aid

The conservative Center of the American Experiment recently posted a strident defense of supply-side economics on a conservative blog. Most economists have long abandoned supply-side economics—or at least the form of it promulgated by right wing politicians and pundits. But some conservatives are trying to breathe new life into supply-side, even though, by their own…

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Metro Area Gets Most from State Business Tax Repeal

Proponents of the elimination of the state business property tax have touted the tax relief that will flow to greater Minnesota businesses. However, the vast majority of the relief will flow to the seven-county metropolitan area, with over a third going to Hennepin County alone. This article is part of a continuing series which examines…

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Broadband Development Goals: A Right Step Forward

The importance of high-speed Internet and universally accessible broadband infrastructure is undeniable in the digital economy like today’s. It is vital infrastructure in every industry, from finance, manufacturing, and agriculture to public services like emergency dispatch, education, and health care. Broadband provides access to information, services, and opportunities to millions of people across the country,…

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Small Business Tax Relief? Not So Much

In recent years conservatives have talked about phasing-out and ultimately eliminating the state business property tax. This is the first of a series of articles that will examine various aspects of this plan. This article will examine the distribution of tax relief between large and small businesses. Just how much of the tax relief from…

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Executive Summary: Minnesota's Budget Surplus

The conservative effort to use the entire budget surplus to reduce state taxes—often referred to as the “give it back” campaign—is based on the premise that state revenues and expenditures have increased dramatically and thus all legitimate state expenditure needs should already be sated. However, a closer look at total state general fund revenue and…

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Minnesota's Budget Surplus: Balancing Tax Cuts and Investments

I. Introduction Last March, a group of legislators gathered at the State Capitol with a simple message: “Give it back!” The “it” refers to the state budget surplus, then projected to be nearly two billion dollars for the upcoming fiscal year (FY) 2016-17 biennium. These legislators urged Governor Dayton and their House and Senate colleagues…

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