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Minnesota

Economic Outlook Rank: 45th
Economic Performance Rank: 31st
45th

Economic Outlook Rank

Current Economic Outlook (2017)

From the 2017 edition of Rich States, Poor States. These values are the most recent available at the time of publication.
Policy Value Rank
9.85% 45th
9.80% 45th
(change in tax liability per $1,000 of income) $18.53 45th
(per $1,000 of personal income) $29.48 28th
(per $1,000 of personal income) $21.59 19th
(per $1,000 of personal income) $24.65 45th
Yes 50th
-$0.0264983 24th
5.62% 11th
(full-time equivalent) 519.16 21st
(tort litigation treatment, judicial impartiality, etc.) 68 13th
(federal floor is $7.25) $9.50 40th
(per $100 of payroll) $1.91 29th
(option to join or support a union) No 50th
0 34th

Economic Outlook Trends Charts

The y-axis for these charts is the actual year of the data, rather than the year of the corresponding publication year.

Top Marginal Personal Income Tax Rate

This variable measures the top marginal tax on earned income in a given state. A state’s largest city was used as a proxy for local tax rates. This ranking includes those local taxes, if any, and any impact of federal deductibility, if allowed. Data were drawn from Tax Analysts, Federation of Tax Administrators and individual state tax return forms.

Top Marginal Corporate Income Tax Rate

This variable measures the top marginal rate on earned corporate income in a given state. A state’s largest city was used as a proxy for local tax rates. This variable includes those local taxes, if any, and in­cludes the effect of federal deductibility, if al­lowed. In the case of gross receipts or business franchise taxes, an effective tax rate was approximated using NIPA profits, rental and proprietor’s income and gross domestic product data. Data were drawn from Tax Analysts, Federation of Tax Administra­tors, individual state tax return forms and the Bureau of Economic Analysis.

Personal Income Tax Progressivity (change in tax liability per $1,000 of income)

This variable measures the difference between the average tax liability per $1,000 at incomes of $50,000 and $150,000. The tax liability measures use a combination of effective tax rates, exemptions and deductions at both state and federal levels, which are calculations from Laffer Associates.

Property Tax Burden (per $1,000 of personal income)

This variable indicates the average burden of property tax in a given state by measuring property tax revenues per $1,000 of personal income. We use U.S. Census Bureau data of the most recently available year.

Sales Tax Burden (per $1,000 of personal income)

This variable indicates the average burden of sales taxes in a given state by taking tax revenues from sales taxes per $1,000 of personal income. Sales taxes taken into consideration include the general sales tax and specific sales taxes. We use U.S. Census Bureau Data of the most recently available year. Where appropriate, gross receipts or business franchise taxes, counted as sales taxes in the Census data, are subtracted from a state’s total sales taxes in order to avoid double-counting tax burden in a state.

Remaining Tax Burden (per $1,000 of personal income)

This variable measures the average tax burden in a given state outside of all other tax burdens measured in this study. It is calculated by taking tax revenues from all taxes—excluding personal income, corporate income (including corporate license), property, sales and severance per $1,000 of personal income. We use U.S. Census Bureau Data of the most recently available year.

Recently Legislated Tax Changes

This variable calculates each state’s relative change in tax burden over two-year (legislative sessions) period for the next fiscal year, using revenue estimates of legislated tax changes per $1,000 of personal income. This time frame ensures that tax changes will impact a state’s ranking immediately enough to overcome any lags in the tax revenue data. ALEC and Laffer Associates calculations use raw data from state legislative fiscal notes, state bud¬get offices, state revenue offices and other sources, including the National Conference of State Legislators.

Debt Service as a Share of Tax Revenue

This variable reflects the interest paid on debt as a percentage of total tax revenue. As this number increases and more money is funneled toward interest payments, the pie of available resources dramatically shrinks. We use U.S. Census Bureau data of the most recently available year.

Public Employees Per 10,000 of Population (full-time equivalent)

This variable shows the full-time equivalent public employees per 10,000 of population. An increase in number means more state citizens are employed by the government. We use U.S. Census Bureau data of the most recently available year.

State Liability System Survey (tort litigation treatment, judicial impartiality, etc.)

This variable ranks tort systems by state. Information comes from the U.S. Chamber of Commerce Institute for Legal Reform Lawsuit Climate Survey.

State Minimum Wage (federal floor is $7.25)

This variable is the state-by-state minimum wage. If a state does not have a minimum wage, we use the federal minimum wage floor. This information comes from the U.S. Department of Labor.

Average Workers’ Compensation Costs (per $100 of payroll)

This variable highlights the Workers’ Compensation Index Rate (cost per $100 of payroll). The survey is conducted biennially, by the Information on Management Division of the Oregon Department of Consumer & Business Services.

Tax Expenditure Limits

This variable reflects the number of state tax or expenditure limits in place. We measure this by i) a state expenditure limit, ii) mandatory voter approval of tax increases and iii) a super majority requirement for tax increases. One point is awarded for each type of tax or expenditure limitation a state has. All tax or expenditure limitations measured apply directly to state government. This information comes from the Cato Institute and other sources.

Economic Outlook Trends Data (2008 - 2017)

Years correspond to the year of the Rich States, Poor States publication, not the actual year of the data. In some cases the data is significantly behind the publication's year.
Policy 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
7.85% 7.85% 7.85% 7.85% 7.85% 7.85% 9.85% 9.85% 9.85% 9.85%
9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80% 9.80%
(change in tax liability per $1,000 of income) $9.06 $9.10 $9.17 $9.17 $17.61 $18.12 $18.27 $18.42 $18.43 $18.53
(per $1,000 of personal income) $27.53 $27.34 $28.96 $29.84 $31.82 $34.11 $34.85 $31.75 $32.71 $29.48
(per $1,000 of personal income) $23.11 $20.62 $21.52 $21.00 $20.16 $20.69 $20.29 $20.44 $20.01 $21.59
(per $1,000 of personal income) $22.41 $23.34 $21.50 $20.53 $21.01 $23.48 $22.86 $24.58 $24.15 $24.65
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
$1.91 $1.08 -$0.24 -$3.96 $0.40 $1.58 $5.65 $2.36 -$1.59206 -$0.0264983
8.80% 7.60% 7.20% 7.20% 7.90% 8.20% 7.10% 7.50% 5.87% 5.62%
(full-time equivalent) 527.2 539.6 537.1 535 525.9 518.6 519.1 509.7 518.57 519.16
(tort litigation treatment, judicial impartiality, etc.) 70.6 66.5 66.5 65.3 65.3 71.4 71.4 71.4 68 68
(federal floor is $7.25) $6.15 $6.55 $7.25 $7.25 $7.25 $7.25 $7.25 $8.00 $9.00 $9.50
(per $100 of payroll) $2.69 $2.33 $2.33 $2.27 $2.27 $2.03 $2.03 $1.99 $1.99 $1.91
(option to join or support a union) No No No No No No No No No No
0 0 0 0 0 0 0 0 0 0
31st

Economic Performance Rank

Overview (2017 Edition)

Metric Value Rank
Cumulative GDP Growth, 2005 - 2015 34.6% 26th
Cumulative Domestic Migration, 2006 - 2015 -65,205 37th
Non-Farm Employment Growth, 2005 - 2015 4.51% 26th

Charts (2017 Edition)

State Gross Domestic Product

Growth, year-over-year

Absolute Domestic Migration


Non-Farm Payroll Employment

Growth, year-over-year

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