Dynamic Scoring: Caveat Emptor

by | Jun 21, 2016

In recent years, there has been a push at both the federal and state levels—coming primarily from conservatives—to adopt “dynamic scoring” to evaluate the impact of changes in tax and fiscal policies. Dynamic scoring attempts to predict the impact of fiscal policy...

Long-Term Trend in County Aid Still Down, Despite 2014 Increase

by | Jun 16, 2016

In 2013, Governor Dayton signed into law a major increase to County Program Aid (CPA), effective in 2014. That $40 million increase boosted the CPA funding level by 24 percent. However, in a chart featured in the preceding North Star article, this significant aid...

County Property Taxes Up Since 2002, Revenues Down

by | Jun 14, 2016

In 2014, Minnesota counties saw a significant increase in state aid, which contributed to a decline in real per capita county property taxes and a modest increase in revenues. However, even after that aid increase, county aid is dramatically less today than it was in...

Conservative Misapplications of the Laffer Curve

by | Jun 9, 2016

For the last four decades, a sizable phalanx of conservative thinkers has argued that government revenues can be increased by cutting tax rates. In reality, tax rate reductions have consistently failed to generate new revenue, both at the federal and state levels....

“Tax-to-Benefit Ratio” Favorable for Minnesota Businesses

by | Jun 6, 2016

Attempts to rank states based on the level of business taxes rarely take into account the benefits that businesses receive from tax-funded public investments. In a report published by the Council on State Taxation (COST), analysts at Ernst & Young (EY) have filled...

Business Share of Total Minnesota Taxes Below U.S. Average

by | Jun 3, 2016

The share of total Minnesota state and local taxes paid by businesses is comfortably below the national average, according to data compiled by Ernst & Young (EY) contained in a recent report from the Council on State Taxation (COST). In fact, Minnesota is among...