St. Paul (October 9, 2013) — Minnesota’s near-bottom ranking in a national survey should convince lawmakers and Governor Dayton that the state doesn’t have a bright future as one of the highest taxed places in America for successful entrepreneurs and investors, said the National Federation of Independent Business (NFIB) today.
“We are clearly moving in the wrong direction,” said NFIB Minnesota State Director Mike Hickey. “Minnesota went from bad to worse in this survey and I can guarantee that business investors all over the country are taking notice.”
The nonpartisan Tax Foundation this morning released its 2014 State Business Tax Climate survey, which dropped Minnesota three places from last year to 47th in the country. The economist for the group cited the big tax hikes enacted this year.
“We are very quickly developing a very bad national reputation and that is very dangerous,” said Hickey. “It’s time for Governor Dayton and the Legislature to rethink their strategy for Minnestoa.”
According to the Tax Foundation report, Minnesota ranks 47th (third highest) in the country for personal income taxes and 44th for corporate taxes. In fact, it ranks in the bottom 20 states in all five of the categories measured.
“We’ve got all the bases covered,” said Hickey. “In most major tax categories small businesses don’t get a break in Minnesota. That’s unacceptable.”
This year Governor Dayton pushed through a very large income tax hike accompanied by new sales taxes on services. With neighboring states moving in the opposite direction, Minnesota could be in for some tough economic times, said Hickey.
“It is simply unrealistic to think that Minnesota can compete with nearby states whose business taxes are substantially lower,” he said. “Unless we change course we’re going to see fewer jobs, a shrinking economy and gradual decline.”