Minnesota

Many cities, counties, and townships across the country are in a difficult, or at least unstable, budgetary position. Localities are responding to these financial pressures in a variety of ways with some charging ahead with enacting innovative reforms like short-term rental and vacancy taxes, and others setting up local tax commissions to study the problem.

Minnesota stands apart from the rest of the country with a moderately progressive tax system that asks slightly more of the rich than of low- and middle-income families. Recent reforms signed by Gov. Tim Walz have contributed to this reality.

Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022. Providing access to work authorization for undocumented immigrants would increase their tax contributions both because their wages would rise and because their rates of tax compliance would increase.

Four states expanded or boosted refundable tax credits for children and families, and the District of Columbia is poised to create a new Child Tax Credit. These actions — in Colorado, Illinois, New York, Utah, and D.C. — continue the recent trend of improving the well-being of children and families with refundable tax credits.

State lawmakers will have a lot to discuss when they compare notes on how they spent their summer vacations this year...

Major tax cuts were largely rejected this year, but states continue to chip away at income taxes. And while property tax cuts were a hot topic across the country, many states failed to deliver effective solutions to affordability issues.

Undocumented immigrants who work and pay taxes but don't have a valid Social Security number for either themselves or their children are excluded from federal EITC and CTC benefits. Fortunately, several states have stepped in to ensure undocumented immigrants are not left behind by the gaps in the federal EITC and CTC. State lawmakers should continue to ensure that immigrants who are otherwise eligible for these tax credits receive them.

The report was produced in partnership with the Center on Budget and Policy Priorities and co-authored by CBPP’s Deputy Director of State Policy Research Samantha Waxman.[1] Click here to use our State Mansion Tax Estimator A historically large share of the nation’s wealth is concentrated in the hands of a few, a reality glaring in […]

Well-designed property tax circuit breaker programs allow states to reduce the impact that property taxes have on the upside-down tilt of their tax codes.

This week, it was the best of times or, in some cases, the worst of times for tax policy in two different states...

There are a variety of factors that affect teacher pay. But one often overlooked factor is progressive tax policies that allow states to raise and provide the funding educators and their students deserve.

As Iowa lawmakers change the state’s graduated personal income tax to a single flat rate, they are designing a state tax code where the rich will pay a lower rate overall than families with modest means.

Many state legislative sessions are wrapping up...

Happy (belated) Tax Day!

Key Findings For families of modest means, California is not a high-tax state. California taxes are close to the national average for families in the bottom 80 percent of the income scale. For the bottom 40 percent of families, California taxes are lower than states like Florida and Texas. The highest earners usually pay higher […]

State and local tax codes can do a lot to reduce inequality. But they add to the nation’s growing income inequality problem when they capture a greater share of income from low- or moderate-income taxpayers. These regressive tax codes also result in higher tax rates on communities of color, further worsening racial income and wealth divides.

Every child deserves the opportunity to succeed in society – and tax policy has a huge role to play in making that happen. Better tax policy can help prepare our young children with skills to become successful and thriving adults.

Many state legislative sessions are in the final stretch...

Anti-tax interests finally found the end of the tax cutting appetite in a few states this week...