January 15, 2015

Minnesota Post: In study on tax fairness, Minnesota looks … fair

media mention

“In The Washington Post, Niraj Shoshi reports, “State taxes favor those with the highest incomes. That’s according to a new report by the Institute on Taxation and Economic Policy report, which finds that on average the bottom fifth of earners pay proportionally twice as much of their incomes in state and local taxes as the top 1 percent. Such systems that are skewed toward the poor are also less stable in the long run, given the decades-long trends of growing income inequality, the report’s authors argue. … While Delaware’s income tax is not particularly progressive, it’s heavy reliance on income taxes instead of consumption taxes make its system the least regressive overall. Though not comparable to a state, D.C. ranks as the next least regressive tax system, followed by California, Oregon, Montana and Vermont. D.C., Minnesota and Vermont make their tax systems fairer by providing generous refundable Earned Income Tax Credits to lower-wage earners.” Overall, Minnesota is 45th most “unfair.” South Dakota? Fourth. Which is to say, great for millionaires.”

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