Economy

Minnesota Business Tax Rate Equals U.S. Average

Business groups—including the Minnesota Business Partnership and Minnesota Chamber of Commerce—actively cultivate the notion that business taxes in the Gopher State are high relative to the rest of the nation. However, total state and local business taxes as a share of business activity in Minnesota are typical of other states and equal to the national…

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Ensure Respect for Minimum Wage Laws

(Note: This article is co-authored with Laura Huizar, a staff attorney at the National Employment Law Project in Washington, D.C.) A few weeks ago, the St. Paul City Council introduced a draft ordinance that would raise the city’s minimum wage to $15 an hour. That’s a good start, but the Council must strengthen the bill’s…

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Caring in Central Minnesota

Minnesota is getting older every day.1 The aging of our population is increasing demand for home health and personal care workers. We also continue to have population growth through both immigration and natural growth. To fill the needs of our changing population we need people to care for the very young, the very old, and…

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Gas Tax Buys One-Third Less Today Than in 2000

The single largest source of funding for Minnesota’s transportation system comes from the state gas tax. However, the purchasing power of that tax has dropped by over one-third over the course of the century, leaving funding for state roads and bridges in a precarious fiscal situation. While the majority of states have increased their gas…

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State Aids: The Shrinking Slice of the City Revenue Pie

City property taxes have increased significantly in recent decades. Even after adjusting for inflation and population growth, the property taxes collected by Minnesota cities have increased by 48% from 1990 to 2018. However, real (i.e., inflation-adjusted) per capita city revenues are down over the same period. The rapid growth in property taxes and the decline…

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Government Growth in Context

Shocking claims of growth in government abound. However, viewed in context of the economic, demographic, and societal changes that have occurred over the last fifty years, the growth in government is far less astounding than the sound-bite statistics indicate. For example, the charge of 5,000% growth in state government is based on the change in…

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Minnesota’s Shared Health

Minnesotans value a high quality of life. It is part of the Minnesota story and one of our competitive advantages. This includes having healthy people in healthy communities. Historically, policy makers have recognized the importance of health care access by investing in a range of systems and resources that ensure Minnesotans have access to affordable…

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Misplaced Faith in Tax Cuts

Whatever the problem, a tax cut will fix it. And under no circumstances ever increase taxes. So goes the conventional conservative mantra. New research from two Oklahoma State University economists (Rickman and Wang, 2018) finds that reality is far more nuanced than this rigid perspective suggests. Tax cuts can promote economic growth—or they can harm…

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More Than Getting By

As the latest American Community Survey data from the Census Bureau shows us, Minnesota continues to have a low poverty rate relative to other states. Why then are so many people in Minnesota struggling to get by? It is important for people thinking about the health of families in Minnesota to understand what the poverty…

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