Tuesday, July 14, 2009
Paying more for someone else's better Minnesota
Had gubernatorial candidate Tom Bakk had his way, that rate would be 53.35%, pulling within .05% of Vermont for seventh place. It would have been more expensive to be a millionaire in Minnesota than New York City or Washington D.C. South Dakota, by the way, would have a top rate of 44.88%.
Meanwhile, President Obama is telling Ghanaian people that a 20% skim for government is no place where business wants to invest. From your mouth to Dane Smith's ear, Mr. President!
(For more on effective marginal rates, see Kotlikoff and Rapson [2006].)