Tax truths
Fact checking
The following facts are based on governmental statistical findings, and clearly make the case that Minnesota’s tax rank is steadily going down:
- Minnesota’s state and local rankings are going down in both taxes and spending.
- Total state and local taxes ranked 8th in 200 and 10th in 2002 (most recent data available). Total state and local spending ranked 19th in 200 and 22nd in 2002*+
- Minnesota now ranks among the low-spending states (below 25th) for:
-
- K-12 Education (27th)
- Higher Education (35th)
- Total Education (29th)
- Health and Hospitals (43rd)
- Key Public Safety Areas:
- Police (36th)
- Fire (47th) and
- Corrections (49th).*+
- State and local tax burdens heading downward by more than 12% from 1996 to 2007:
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- In 1996, Minnesotans paid 12.7% of their income in state and local taxes.
- In 1998, state and local burden went down to 11.8%.
- The latest Study (2002) shows the burden declined to 11.3%
- Projected burden in 2007 is 11.1%+
- Minnesota spending consistently ranks below the Top Ten:
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- State ranked 11th in total state and local spending based on personal income in 1998.
- Minnesota’s rank went down to 14th in 2000.
- State and local spending dropped to 21st in 2001.
- State spending rank in 2002 was 22nd (most recent data available).* (Source’s methodology changed in 2002—it no longer includes local spending)
- State stays out of the Top Ten in state Tax Freedom Day ranking for the past 3 years:
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- Minnesota ranks 11th in Tax Freedom Day (total federal, state and local taxes) in 2005.
- Our state Tax Freedom Day was May 6th in 2000, but is now April 18th (18 days earlier).
- Total federal, state and local taxes for Minnesota slid from 3rd in 1999 to 13th in 2000.**
- +
- 1999, 2001 and 2005 Minnesota Tax Incident Study, Department of Revenue
- *
- Governing magazine Sourcebook—ranking derived directly from the U.S. Census Bureau
- *+
- Minnesota Taxpayers Association—rankings derived from U.S. Department of Commerce
- **
- Tax Foundation in Washington, DC