ITEP Work in Action February 16, 2023
Minnesota Budget Project: Governor Walz Releases FY 2024-25 Budget PrioritiesThe Walz administration’s recently released budget proposal names as their priorities making Minnesota the best state for children, investing in the state’s economic future, and promoting the health and safety…
blog July 18, 2019
Many States Move Toward Higher Taxes on the Rich; Lower Taxes on Poor People
Several states this year proposed or enacted tax policies that would require high-income households and/or businesses to pay more in taxes. After years of policymaking that slashed taxes for wealthy households and deprived states of revenue to adequately fund public services, this is a necessary and welcome reversal.
ITEP Work in Action October 17, 2018
Minnesota Budget Project: Minnesota Ranks High for Tax Fairness in 50-State Study
In an era of income inequality and growing concentration of wealth, a new 50-state study released today analyzes whether state tax systems make income inequality better or worse. The Institute on Taxation and Economic Policy (ITEP) finds that nearly every state fails basic measures of fairness, but Minnesota is among a small number of states where income inequality is reduced by state tax policy.
October 17, 2018
Minnesota: Who Pays? 6th EditionMINNESOTA Read as PDF MINNESOTA STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
September 26, 2018
Tax Cuts 2.0 – MinnesotaThe $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
ITEP Work in Action May 16, 2018
Minnesota Budget Project: Governor Dayton’s Proposed Supplemental Budget Makes Investments In Education, Health And Human Services, Economic Development, Saves For The Future
Governor Mark Dayton released his FY 2018-19 supplemental budget proposal today, focused on making strategic investments to support Minnesota’s economic success, prioritizing working Minnesotans in responding to the federal tax bill, and leaving some of the state’s projected surplus unspent “to cushion against risk.”
ITEP Work in Action March 28, 2018
Minnesota Budget Project: Families With Children Could Pay Higher Taxes Under Tax ConformityThe complex set of tax changes in the recent federal tax bill creates a set of challenging decisions for states like Minnesota. Because Minnesota’s state income and corporate taxes use federal tax…
ITEP Work in Action December 18, 2017
Minnesota Budget Project: 4 Reasons DACA should be restored ASAPDACA results in increased economic activity in our communities and increased tax revenues. DACA recipients in Minnesota contribute an estimated $15 million in state and local taxes annually. Read more…
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Minnesota Residents’ Federal TaxesThe final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low-…
December 6, 2017
How the House and Senate Tax Bills Would Affect Minnesota Residents’ Federal Taxes
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Minnesota residents.
November 14, 2017
How the Revised Senate Tax Bill Would Affect Minnesota Residents’ Federal Taxes
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Minnesota, 47 percent of the federal tax cuts would go to the richest 5 percent of residents, and 15 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Minnesota Residents’ Federal Taxes
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
October 4, 2017
GOP-Trump Tax Framework Would Provide Richest One Percent in Minnesota with 62.2 Percent of the State’s Tax Cuts
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Minnesota equally. The richest one percent of Minnesota residents would receive 62.2 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $632,000 next year. The framework would provide them an average tax cut of $65,780 in 2018, which would increase their income by an average of 2.5 percent.
August 17, 2017
In Minnesota 46.6 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Minnesota population (0.7 percent) earns more than $1 million annually. But this elite group would receive 46.6 percent of the tax cuts that go to Minnesota residents under the tax proposals from the Trump administration. A much larger group, 36.9 percent of the state, earns less than $45,000, but would receive just 5.0 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Minnesota with 50.8 Percent of the State’s Tax Cuts
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Minnesota would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $2,589,800 in 2018. They would receive 50.8 percent of the tax cuts that go to Minnesota’s residents and would enjoy an average cut of $120,420 in 2018 alone.
ITEP Work in Action June 22, 2017
Minnesota Budget Project: DACA recipients make important tax contributions to MinnesotaMinnesota’s Deferred Action for Childhood Arrival (DACA) recipients pay an estimated $15 million in state and local taxes, according to a report from the Institute on Taxation and Economic Policy…
blog May 24, 2017
State Rundown 5/24: Several States Scramble to Finalize Budgets
This week, Kansas lawmakers continued work on fixing the fiscal mess created by tax cuts in recent years, as legislators in Louisiana, Minnesota, Oklahoma, and West Virginia attempted to wrap up difficult budget negotiations before their sessions come to an end, and Delaware lawmakers advanced a corporate tax increase as one piece of a plan to close that state’s budget shortfall. Our “what we’re reading” section this week is also packed with articles about state and local effects of the Trump budget, new 50-state research on property taxes, and more.
ITEP Work in Action March 9, 2017
Minnesota Budget Project: Undocumented Immigrants Pay $83 Million in State Taxes, Would Pay More with Immigration Reform
Undocumented immigrants play a vital role in Minnesota’s economy and currently pay an estimated $83 million in state and local taxes, according to a new report from the Institute for Taxation and Economic Policy (ITEP). Under immigration reform that provides a path to legal status, ITEP estimates these contributions would substantially increase.
media mention October 14, 2016
CBS News: Is your state next to raise its gas tax?“’There has been a lot of procrastination,’ said Carl Davis, research director of the Institute on Taxation and Economic Policy. ‘It’s an issue that the states cannot put off any…
media mention August 17, 2015
Minn Post: Tax and Spin: Most Families in Wisconsin, it Turns Out, Would Save on Taxes by Moving to MinnesotaFor years, Wisconsin has had some of the highest residential property taxes in the country. The result is that across every income bracket, homeowners in Wisconsin pay a higher share…
media mention July 2, 2015
Iron Mountain Daily News: Meanwhile, in MinnesotaHey, Michigan, look over here. Look west. OK, that’s Ironwood, which is still in Michigan. A little further. There you go. Hi. Minnesota’s the name. So you’ve got some state…
ITEP Work in Action March 13, 2015
Minnesota Department of Revenue: 2015 Minnesota Tax Incidence Study“Given the questions raised about how Minnesota compares to other states, this section summarizes the results of a 50-state study of state and local tax incidence. That study, entitled Who…
media mention January 15, 2015
Minnesota Radio: Minnesota among highest-ranked states for tax ‘fairness’“Minnesota has one of the least regressive tax structures in the country, according to the Institute on Taxation and Economic Policy, which has released a study of individual state’s tax…
media mention January 15, 2015
Twin Cities Daily Planet: Minnesota state, local taxes fairer than most, report finds“Minnesota’s tax structure is among the fairest in the country, according to the results of an annual analysis of state and local tax systems released today by the nonpartisan Institute…
media mention January 15, 2015
Minnesota Post: In study on tax fairness, Minnesota looks … fair“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,…