Wealthy Minnesotans pay smaller share of taxesby Tim Nelson, Minnesota Public Radio
St. Paul, Minn. — State officials say Minnesota's tax system is becoming more regressive and that the highest earners pay less a percentage of their income than lower and middle income Minnesotans.
In the new study of tax burdens released Wednesday, the Minnesota Revenue Department appears to support Gov. Mark Dayton's contention that the state's tax system is out of balance.
The department's report says the top 10 percent of earners pay an effective tax rate of only about 10.3 percent. That compares to about 12.3 percent for all other taxpayers.
Revenue department tax researcher Paul Wilson said Dayton's proposal to raise income taxes for top earners would move them up from that 10.3 percent.
"That probably goes up about 1 percentage point," Wilson said. "So if that were the only change, you'd see the top decile change toward the average, but not to it. But it would be a significant, significant change."
Republicans oppose the governor's plan to help balance the state's budget with higher income taxes.