Minnesota vs. U.S. Income Trends Since the Great Recession

by | Aug 27, 2018

When it comes to income trends in Minnesota, we’ve got some good news and some bad news. The good news is that income growth in Minnesota has surpassed the national average over the last decade, both in aggregate and within every income group. The bad news is that...

Poor People Have the Highest Effective Tax Rates

by | Jul 6, 2018

An argument used to undermine programs that provide tax relief for low-income people—such as Minnesota’s Working Family Credit (WFC) and Child & Dependent Care Credit—is that they provide tax relief to households that are not paying taxes in the first place....

Tax Conformity Impasse Was Only Partially About Conformity

by | Jun 5, 2018

In the recently concluded legislative session, lawmakers failed to agree on how to conform Minnesota’s tax code to the new federal tax law passed late last year. The Governor and conservative leadership agreed on most of the mechanics of federal tax conformity, with...

Our Top Takeaways from the 2018 Minnesota Legislative Session

by | May 22, 2018

The Minnesota House and Senate adjourned late Sunday night, and brought the 2018 legislative session to a close. With Governor Mark Dayton likely to follow through on threats to veto key pieces of legislation, the complete book on the session is still being written.  ...

Generating State Revenue Through Corporate Tax Conformity

by | Mar 22, 2018

The so-called “Tax Cut and Jobs Act” (TCJA) enacted by Congress last year made massive changes to the federal tax code. Minnesota and other states must now decide if and how to conform their own tax codes to the federal changes. As we note in part 1 of this series,...