Minnesota Senate DFLers propose nation's highest income tax bracket

[Ban my account ffs!]

http://www.startribune.com/587/story/1090142.html

The new rate would be 9.7% from the current 7.85% on incomes over $250,000 for joint filers and $130,000 or so for single filers.

Most of this new revenue would go to bring property tax relief to poorer Minnesotans and provide a big boost in funding for Minnesota schools.

Of course I'm not happy to see taxes going up that much, but it is basically income redistribution and funding for our children, so I can't complain too much.  The Republicans are really whining and moaning about this but offer no alternatives to bring Minnesota's schools back up to #1 after a 5 year Republican hiatus.

The senate tax plan also would raise taxes on businesses by closing loopholes to businesses that outsource or keep their money in tax havens, which I think is totally fair.  Small business people can't afford to do this stuff, so large businesses get an advantage by being able to pay lower taxes.. make the playing field fair.

[I spent the winter writing songs about getting better]

Good. Now let's see what Pawlenty does. My guess is he'll sign it and make up some weasley excuse (It's a "high income fee", not a tax)

[bullmoose88]

why can't minnesota just create more marginal brackets...leave the upper middle brackets the same or slightly increase, and just wallop the extremely wealthy...you'd find less opposition from the GOP on this (the party of the upper middle class).

I don't think joint filers making 250k or more will suffer much, unless they have large families, in which case I think some sort of tax break is in order.

[Ban my account ffs!]

You have a point there.  I'm not all for large income tax hikes (though they are better than the uber-massive property tax hikes that have been affecting poor and elderly Minnesotans over the past 5 years). 

I could also see having a tax break/credit for "rich" families that have many children.  That should go without saying.

[○∙◄☻¥tπ[╪AV┼cVê└]

Good news to see that it has such a high cutoff. In California, after only $40,346 of taxable income, you're already in the top tax bracket of 9.3%.  If you're living in a place like Mill Valley, you still aren't anywhere close to be able to buy some tiny fixer upper with that kind of money. The rich need to be soaked, not people who can't afford to buy a house.

[Verily]

Good news to see that it has such a high cutoff. In California, after only $40,346 of taxable income, you're already in the top tax bracket of 9.3%.  If you're living in a place like Mill Valley, you still aren't anywhere close to be able to buy some tiny fixer upper with that kind of money. The rich need to be soaked, not people who can't afford to buy a house.

Well, then, they're not living in Mill Valley, are they?

California in general has one of the worst tax codes in the country; the combination of a low cut-off and Proposition 13 make California taxes inefficient in collection and heavy on the poor.

[○∙◄☻¥tπ[╪AV┼cVê└]

Good news to see that it has such a high cutoff. In California, after only $40,346 of taxable income, you're already in the top tax bracket of 9.3%.  If you're living in a place like Mill Valley, you still aren't anywhere close to be able to buy some tiny fixer upper with that kind of money. The rich need to be soaked, not people who can't afford to buy a house.

Well, then, they're not living in Mill Valley, are they?

California in general has one of the worst tax codes in the country; the combination of a low cut-off and Proposition 13 make California taxes inefficient in collection and heavy on the poor.

Actually no, California's tax system, while regressive, is actually the 4th most progressive of the 50 states (losing out to DE, VT, MT).

http://www.itepnet.org/wp2000/text.pdf

[David S]

Well since Minnesota hates those rich folks so much, why don't you point them toward Michigan. We'll be happy to take them. Our income tax is only 4.5% and our sales tax of 6% is  lower too. Plus our climate doesn't suck as bad as Minnesota's. We are surrounded by great lakes, so there are plenty of boating opportunities for folks with big boats. And as long as you stay away from Detroit, Flint and a couple of other areas the crime rates are low too.

OOPS bad on me. Our tax rate is only 3.9%

[Bono]

Well since Minnesota hates those rich folks so much, why don't you point them toward Michigan. We'll be happy to take them. Our income tax is only 4.5% and our sales tax of 6% is  lower too. Plus our climate doesn't suck as bad as Minnesota's. We are surrounded by great lakes, so there are plenty of boating opportunities for folks with big boats. And as long as you stay away from Detroit, Flint and a couple of other areas the crime rates are low too.

Wow, you should work for the tourism board.
Come to Michigan--we are marginally less oppressive.

[Verily]

Good news to see that it has such a high cutoff. In California, after only $40,346 of taxable income, you're already in the top tax bracket of 9.3%.  If you're living in a place like Mill Valley, you still aren't anywhere close to be able to buy some tiny fixer upper with that kind of money. The rich need to be soaked, not people who can't afford to buy a house.

Well, then, they're not living in Mill Valley, are they?

California in general has one of the worst tax codes in the country; the combination of a low cut-off and Proposition 13 make California taxes inefficient in collection and heavy on the poor.

Actually no, California's tax system, while regressive, is actually the 4th most progressive of the 50 states (losing out to DE, VT, MT).

http://www.itepnet.org/wp2000/text.pdf

Being progressive doesn't necessarily make it better, though it helps.

[David S]

Well since Minnesota hates those rich folks so much, why don't you point them toward Michigan. We'll be happy to take them. Our income tax is only 4.5% and our sales tax of 6% is  lower too. Plus our climate doesn't suck as bad as Minnesota's. We are surrounded by great lakes, so there are plenty of boating opportunities for folks with big boats. And as long as you stay away from Detroit, Flint and a couple of other areas the crime rates are low too.

Wow, you should work for the tourism board.
Come to Michigan--we are marginally less oppressive.

LOL well I think I might word it a little differently. How about this:

"Welcome to Michigan wealthy Minnesotans. We love you. Come to our state and enjoy our low low tax rates."

[Ban my account ffs!]

Minnesota has had high taxes for a very long time, and that certainly hasn't stopped many very successful companies from being started here.  It has to do with valuing education and health care over your wallet.

Smart, healthy people start businesses and create wealth.  Poor, uneducated, sick trailer trash don't. 

That's why they call it the Minnesota Miracle.

[Ban my account ffs!]

Minnesota has had high taxes for a very long time, and that certainly hasn't stopped many very successful companies from being started here.  It has to do with valuing education and health care over your wallet.

Smart, healthy people start businesses and create wealth.  Poor, uneducated, sick trailer trash don't. 

That's why they call it the Minnesota Miracle.

And I just realized how condescending and rude that sounded.

But it is true:  On the whole, well educated, healthy people will be more successful.  You don't get healthy, well educated people by cutting taxes.  (Though successful people tend to ignore what their parents sacrificed for them to be successful and push for tax cuts anyway).

[David S]

In Michigan the school districts vary widely from one area to another. Some of them like Troy, Birmingham, Bloomfield and Grosse Ile are among the best in the country.

[WalterMitty]

hopefully pawlenty will veto this nonsense.

[Ban my account ffs!]

Even if he does veto this, he probably could not stand up to a veto override on a slightly modified bill.

[WalterMitty]

in theory i could support a plan like this, because i believe excessive property taxes are far more destructive than high income taxes.

but 9.7% is way too high, and 130k/250k is too low.  that is certainly not 'wealthy.

8.75% on single people making 150k+ and 275k for joint filers would be reasonable.

[Ban my account ffs!]

http://www.startribune.com/561/story/1090939.html

Interesting editorial about our tax policy and the economy.  Minnesota's government is 10% smaller than it was 10 years ago thanks to tax cuts galore.  And yet, since 2001, our economy has been in the dumps, relatively speaking.  Our unemployment rate equaled the nations for the first time in a very long time in February and we've fallen from 8th in the nation for per capita income to 12th in just a few years.

All of this has happened during a supposed period of "robust" economic growth and a more favorable business climate in the state.


And the whole time Republicans have screamed "WELL, More tax cuts oughta do it!".. what a line of bull.

Mark my words:  These tax increases will pass, and it won't be long after that our economy will begin to improve.