Minnesota, like a lot of states, is facing a major budget shortfall. In order to close the state’s $6.2 billion gap, the Wall Street Journal reports that the state’s new Democratic governor is considering jacking up the state’s taxes on high income earners to unprecedented levels:
Mr. Dayton, a Democrat, on Tuesday proposed raising the top rate on couples earning more than $150,000 of taxable income to 10.95%, up from 7.85%. He also suggested adding a 3% surcharge on taxable income above $500,000 for the next two years. In addition, he wants to create a new, higher property-tax bracket for homes valued at more than $1 million.
Hawaii and Oregon currently have the highest state income-tax rates, both at 11%.
The proposals in Minnesota brought an angry response from business groups and face a major hurdle in the Republican-controlled state legislature, where leaders said they would propose their own budget balanced solely with spending cuts.
Hawaii and Oregon currently have the highest state income-tax rates, both at 11%.
The proposals in Minnesota brought an angry response from business groups and face a major hurdle in the Republican-controlled state legislature, where leaders said they would propose their own budget balanced solely with spending cuts.
While raising taxes on the wealthy may seem like the most politically palatable solution to Minnesota’s fiscal problems, we’ve seen this move played out before in other states with disastrous results.
Recommended Stories
Print subscriber? Click here to login/register your account
Digital subscriber? Click here to login/register your account.