Posts Tagged ‘Minnesota income tax’

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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Fourth Tier Impact is Modest

Ever since its passage during the 2013 legislative session, Minnesota conservatives have been critical of the fourth tier income tax, which increased the state tax rate on income above the fourth tier threshold from 7.85 percent to 9.85 percent. However, as noted in part one of this series, a significant portion—up to nearly 40 percent for…

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Much of Fourth Tier Tax Increase Shifted to Feds

Conservatives contend that Minnesota’s fourth tier income tax has led to a significant reduction in work, as well as flight to other states, among the high-income households affected by the tax. However, if we do the math, the impact of the fourth tier income tax increase upon the total tax liability and disposable income of…

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