Dear Neighbor,
Tax Freedom Day was Monday nationally and will arrive Tuesday in Minnesota. This is the day when workers have earned enough money to pay the year's tax bill.
In other words, we spend nearly four months working to pay for government. It hurts just thinking about it in those terms. Only four states take longer than Minnesota to reach Tax Freedom Day. Louisiana was the first (March 30), while New Jersey and Connecticut will be the last (May 9).
In all, the Tax Foundation says Americans will pay $3 trillion in federal taxes this year and another $1.5 trillion in state taxes. You can see the whole report by visiting www.taxfoundation.org.
On a related note, Tax Foundation released information that Minnesota’s tax climate is worsening. According to the organization’s State Business Tax Climate Index, our state ranks 47 out of 50, down two spots from the previous ranking. The report compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. Only California, New Jersey, and New York ranked lower than Minnesota.
Let's keep these points in mind when a bill that would pay for construction projects throughout the state comes to the House floor. Gov. Mark Dayton proposes $1 billion in state spending. The chair of the Capital Investment Committee has multiple bonding proposals introduced, including some as high as $1.3 billion. The more we borrow, the more taxpayers have to pay and the longer it will take us to reach Tax Freedom Day.
Sincerely,
Tom