Tax Battle in Minnesota

I am a huge fan of Minnesota’s NFL Vikings.

I am not a fan of Minnesota’s tax system.

On the SBE Council “Business Tax Index 2009,” Minnesota ranked a pathetic 44th among the 50 states and District of Columbia, with only New Jersey and D.C. inflicting more costly tax systems for entrepreneurship and small business.

Unfortunately, the Democrats in Minnesota are trying to make matters even worse on the state tax front. As reported by Inforum.com, Democratic state legislators are ready to pass a $1 billion tax hike that includes pushing the state’s top personal income tax rate to 9 percent, while also jacking up taxes on alcoholic beverages and slapping a tax on credit card companies that push interest rates above 15 percent.

Fortunately, Governor Tim Pawlenty (R) has pedged a veto, and if Republicans in the state legislature hold in support of the veto, an override should fall short.

Stay tuned.

In the meantime, what’s the deal with Brett Favre and his flirtations with the Vikes? Sorry, I digress.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council