Metro Tax Base Sharing: Net Contributors, Recipients

From the time we are toddlers, we are told that sharing is good. However, it is often not easy—and it can be complicated. A case in point is the metropolitan tax base sharing program, known more commonly as the fiscal disparity program.* For over four decades, the...

Criticisms of Minnesota's Estate Tax are Inflated

The estate tax plays a positive role in generating revenue and reducing the regressivity of Minnesota’s tax system, as noted in the first part of this series. However, no discussion of the estate tax would be complete without addressing conservative criticisms of the...

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...

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...

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...

Real City Spending Down Since 2006

Total Minnesota city revenues—adjusted for inflation—have declined by six percent from 2006 to 2015, based on data from the recently released Minnesota City Finances report from the Office of the State Auditor (OSA), as summarized in the preceding North Star article....