Taxes

State Aid Decline Coincides with City Property Tax Increases

Some state elected officials regularly express angst about the growth in city property taxes, blaming local elected officials for this trend. However, this is a case of misplaced attribution. True, city property taxes have increased since 2000. However, the primary culprit behind property tax hikes are reductions in other city revenues—most notably, state aid. The…

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City Spending Drops Significantly Since 2000

Some conservatives like to complain about growth in city spending. In reality, spending by Minnesota cities has fallen significantly since the beginning of the century, after properly adjusting for inflation and population growth. The vast majority of this reduction has been in cuts to capital spending, which includes funding for city infrastructure. The Office of…

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Tax Conformity Impasse Was Only Partially About Conformity

In the recently concluded legislative session, lawmakers failed to agree on how to conform Minnesota’s tax code to the new federal tax law passed late last year. The Governor and conservative leadership agreed on most of the mechanics of federal tax conformity, with some significant exceptions. Where they did not agree was on how to…

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Our Top Takeaways from the 2018 Minnesota Legislative Session

The Minnesota House and Senate adjourned late Sunday night, and brought the 2018 legislative session to a close. With Governor Mark Dayton likely to follow through on threats to veto key pieces of legislation, the complete book on the session is still being written.   Here are quick takes from North Star’s three policy experts…

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Corporate Tax Cuts Increase Income Inequality

North Star would like to thank Professor Louis Johnston of the College of Saint Benedict/Saint John’s University for critiquing earlier drafts of this article.   Conservatives typically argue that the benefit of corporate tax cuts will trickle down to workers in the form of higher wages. New research published this month indicate that workers do…

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Emergency School Aid Increase in Context

Governor Dayton recently proposed a one-time “emergency aid” increase of $138 million to Minnesota public schools in fiscal year (FY) 2019, in the form of a two percent increase in basic general education formula revenue and selected categorical aid programs. This aid increase would replace a portion of the real (i.e., inflation-adjusted) per pupil school…

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So Many Myths, So Little Time

The first installment in this series scratched the surface of the abundant supply of Minnesota economic and fiscal policy myths. This article scratches a little deeper, knocking off three additional myths. Some of these myths are not unique to Minnesota, but all are heard in Gopher State policy debates. And all are false. Myth #1:…

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Debunking Minnesota Economic and Fiscal Policy Myths

Minnesota is a land of 10,000 lakes and almost as many misconceptions about the size of government, growth in public revenue and expenditures, and performance of the state’s economy. Some of these mistaken beliefs are the result of an innocent misreading of the data, while others are the product of deliberate disinformation campaigns. The following…

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