Posts Tagged ‘Minnesota Tax Incidence Study’

Income Inequality, Tax Regressivity are Worse Than We Thought

There has long been convincing evidence—both at the state and national levels—that income inequality has accelerated in recent decades, with an increasing share of wealth concentrated in fewer and fewer hands. Extreme income inequality—coupled with stagnant or declining real wages—undermines a consumer economy, since working families are less able to purchase the goods and services…

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Tax Regressivity in Minnesota vs. Other States

Minnesota policymakers of all political persuasions have touted the importance of reducing tax regressivity—in other words, reducing the extent to which taxes as a percent of income are borne disproportionately by low- and middle-income households. Thus, it should come as good news that Minnesota has the seventh least regressive tax system in the nation, despite…

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Minnesota’s Income Tax: Not the Most Progressive

Like many states, Minnesota offsets the regressivity of sales and property taxes through a progressive income tax. Minnesota’s income tax became more progressive in 2013 with the addition of a fourth income tax bracket for high-income households. Even after enactment of the new fourth tier, however, Minnesota’s individual income tax is still far from the…

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Federal Estate Tax Conformity: A Big Win for Über-Rich

By ensuring that extremely high-income households pay state and local taxes at a rate approaching that of other Minnesota households, the estate tax does more, dollar for dollar, than any other tax to reduce tax regressivity in Minnesota. Conservatives want to dramatically reduce Minnesota’s estate tax by conforming to federal law, which would have the…

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Estate Tax Break Increases Regressivity

Conservatives in Minnesota continue to push for a dramatic reduction in Minnesota’s estate tax, which would almost exclusively benefit the state’s wealthiest residents (who already enjoy below average effective tax rates). Implementing the estate tax reductions proposed by conservatives would further increase the regressivity of Minnesota’s state and local tax system. The estate tax is…

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Federal Taxes in the MTIS: In or Out?

The Minnesota Tax Incidence Study (MTIS) looks at the impact of state and local taxes by income group, in an attempt ascertain who is paying Minnesota taxes. Since it was first published by the Minnesota Department of Revenue (MDOR) in 1991, the MTIS has been one of the best state tax incidence studies in the…

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