Posts Tagged ‘tax regressivity’

Estate Tax Increases Fairness

The one tax that conservatives seem to hate more than any other is the estate tax. Before the significant estate tax relief enacted in 2014 is even fully phased-in, they want to cut the tax again. However, the estate tax is an effective way to prevent the accumulation of extraordinary levels of wealth in the…

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How to Succeed in Tax Rankings Without Really Trying

The conservative Tax Foundation just released the 2017 version of its State Business Tax Climate Index (SBTCI) and once again, Minnesota is purportedly in terrible shape. Minnesota policymakers need only follow a simple strategy to improve its ranking on the SBTCI: increase the regressivity of Minnesota’s state and local tax system by shifting a larger…

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The High Cost of Fully Exempting Social Security Benefits

Fully exempting Social Security from the state income tax will result in a rapidly escalating state revenue loss and will have consequences that violate several principles of good tax policy. These and other aspects of plans to exempt all Social Security benefits were explored in a March 2016 House Research background paper. Using information from…

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Who Pays the “Fair Tax”?

The term “fair tax” refers to proposals to repeal individual and corporate income taxes and several other taxes and replace them with a broad-based sales tax. How will this tax impact taxpayers of differing incomes? As it turns out, the answer depends on how the fair tax is structured. The following analysis will provide a…

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Working Family Credit Works

Conservatives and progressives don’t agree on much—especially in the area of tax policy. However, one program that draws support from both ends of the political spectrum is Minnesota’s Working Family Credit. This tax credit helps families across the state meet basic needs while also encouraging work. At the same time, the credit helps to reduce…

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