Posts Tagged ‘effective tax rates’

Minnesota in the Middle on Middle-Income Taxes

Minnesota conservatives work hard to portray Minnesota as a high tax state. In reality, state and local effective tax rates for middle-income families in Minnesota are fairly typical of the rates in other states. In addition, average effective tax rates for lower-income households in Minnesota are below the national average. The state and local effective…

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Poor People Have the Highest Effective Tax Rates

An argument used to undermine programs that provide tax relief for low-income people—such as Minnesota’s Working Family Credit (WFC) and Child & Dependent Care Credit—is that they provide tax relief to households that are not paying taxes in the first place. However, poor people do pay taxes. In fact, as a percent of income, they…

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Minnesota Business Tax Rates Below U.S. Average

Minnesota’s business lobby frequently complains that business tax rates in the Gopher State are high. Such claims are often based on nominal tax rates—in other words, the rates that are written into state law; however, nominal rates do not take into account various statutory exclusions that reduce the base against which the rate is applied…

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