In September, I wrote an article: The Great Minnesota Exodus Tax Acts of 2013 that is posted on www.gopherstatepolitics.blogspot.com. The article analyzed the adverse consequences of Minnesota’s new Edina income tax rate, gift & estate taxes, and referred to the warehouse tax on business.
Minnesota is ranked 45th in the Tax Foundation (www.TaxFoundation.org) 2013 State Business Tax Climate Index. My article suggested that with our new taxes, we might nose-dive to the bottom five in the next year’s index. The thinking being that we might be able to crack # 46...
I was wrong.
The 2014 Index has come out and we dropped to # 47. Wow! Not only did we plummet two rankings, but we were honored with special thoughts from the foundation. Minnesota suffers from complex, non-neutral taxes, with comparatively high rates. The 2013 Minnesota Legislature enacted a package of tax changes that reduce the state’s competitiveness, including a retroactive hike in the individual income tax rate.
Now, we are up against the big boys. Only New Jersey, California, and New York have worse state business tax climates and stand in our way as we claw towards the bottom.
But – take heart, Minnesotans – our legislature is known for its ability to achieve the "implosible".
Bob Smith 3rd
St. Paul, MN
