Monday, March 02, 2009
A tale of two tax neighborhoods
Under the current tax system, according to the OECD, the top statuatory individual income tax marginal rate is 41.4%, combined state and local. In Minnesota, that would be 42.85%. On the OECD measure, for wage income that puts us 11th of the 31 OECD countries for low taxes, between Austria and Spain.
In 2011, the rate rises to 39.6% for federal, and the state is threatening a 10.3% top marginal tax rate. That moves us to about 50% for the top marginal rate, to 24th on the list. We'd be between Italy and France. Good for geography. Lousy for economic growth.
In 2011, the rate rises to 39.6% for federal, and the state is threatening a 10.3% top marginal tax rate. That moves us to about 50% for the top marginal rate, to 24th on the list. We'd be between Italy and France. Good for geography. Lousy for economic growth.
