It’s been well documented that the middle class and poor pay more of their income in state and local taxes than the top-earners in Minnesota.
On Tuesday Governor Mark Dayton proposed changing that and making the top 5% of earners in Minnesota pay more.
Minnesota’s small business association state director Mike Hickey claims the move would be bad for business. And says “tax fairness” really doesn’t matter.
“That’s one way people look at it,” says Hickey. “They have this strong notion of what fairness is. We look at reality. These are tax rates across the states and the entrepreneurs don’t really share that notion of fairness or try to understand that (tax incidence) study or that approach. They look at what states tax people at. And I don’t think it’s a realistic way to look at things, what someone’s paying of what. They got to look at what the rate is for different states.
“They really don’t share that notion of fairness for whatever groups believe in that so strongly and they look at what the real tax rates are and what they pay in Minnesota versus somewhere else.”