Tax burden in Minnesota (Duluth: crime rate, unemployment, schools)

[Clifford63]

Originally Posted by MonkeyButler7000

List of U.S. states by population growth rate - Wikipedia, the free encyclopedia

Actually South Dakota is ranked 15th in population growth, well above the national average. South Dakota also has no income tax.

I wondered about SD. Thanks for posting the info. The only things to keep in mind is things change quickly sometimes and the delta from best to worst is pretty small.

Washington State, Oregon and California jumped out on the list as high tax states that managed to maintain growth. Many on the list were western states, and lower tax states.

[pepe1]

[SIZE=3]I’m not convinced from the Wikipedia article you have provided that South Dakota is indeed a fast growing state in terms of population. For one, the article is merely a 1-year snap shot of estimated population growth. Let’s examine population trends of our 3 reference states since 1970. In each decade, our high tax/service states of Minnesota and Iowa have averaged 8% and 2% growth respectively. Our low tax/service state of South Dakota has averaged 4% growth. Net effect: There appears to be no correlation in our example of tax climate and population growth.[/SIZE]

[rcsteiner]

Originally Posted by tazzman

Interested in hearing comments about Minnesota's tax burden - I saw a chart listing it as the 12th highest - especially if you moved there from a state with a lower burden, and/or if you are retired since I also read MN is one of the states that tax retirement income. Do you feel that you get something back in terms of good roads, good schools, good recreation, public transport, public services, etc. In essence, do you feel that you get your money's worth? I'm especially interested in the Duluth area. Thanks.

The taxes I pay now in Georgia seem roughly the same as the taxes I paid when I owned a house and lived in the Twin Cities, but while the suburban county that I live in down here (Cobb) is fairly well run, I don't think the State of Georgia does as well spending the tax money down here as the State of Minnesota did up there.

I miss the civic-mindedness of the general population up there. Yes, a lot of people didn't care, but a lot of people did.

It seems that folks down here are more interested in finding ways to screw the system rather than improve it.

[inkshrink]

Originally Posted by tazzman

Interested in hearing comments about Minnesota's tax burden - I saw a chart listing it as the 12th highest - especially if you moved there from a state with a lower burden, and/or if you are retired since I also read MN is one of the states that tax retirement income. Do you feel that you get something back in terms of good roads, good schools, good recreation, public transport, public services, etc. In essence, do you feel that you get your money's worth? I'm especially interested in the Duluth area. Thanks.

TAZ The taxes in Minnesota are real high and some liken the political environs to Calif. with many laws which need to be paid for by these taxes. some call it the land of 10000 taxes or 10000 laws. Mn as a whole is a very beautiful state but has an extreme and long winter especially in the northern regions like Duluth. mild temps are here for @ 3 months in the summer and it is not uncommon to have the heat on at nite in July. I have lived over 1/2 my life here and feel you would prob be better served looking at Wis. it has less taxes better politics and more of all the nice things.

[inkshrink]

Very realistic, Thank You for the truth

[Twinsfan]

Having lived most of my life in MN, now a resident of SD, I would have to say I favor the higher taxes I paid in MN to the no income taxes in SD. Just because there is a lack of state income tax does not mean they don't get their money, clothing, cell phones, gas, are all taxed, usually by the city you are in, so one town might have gas over ten cents a gallon more than the next town. A lack of income tax only passes the buck on to the next level of government. I personally think it is more fair to tax based on income than to tax other things that people need to buy regardless of their income. Services are generally not nearly as good here, often times city streets pile up with snow before they are plowed, sometimes days after a modest snow. They also do no salting, which sounds fine and dandy, tll you have a january like this one, which temps never got over 25 degrees and the highways were so slippery you have to drive in 4 wheel drive all the time.

[MeganAK]

So this might sound dumb, but I have been following this post because we are also debating Wisconsin vs Minnesota vs somewhere else, and I am wondering about state tax vs federal tax. I have never lived in a state where you pay state income tax. Is it on top of the federal tax, or is your federal tax rate lower to compensate for the state tax?

[Clifford63]

Originally Posted by MeganAK

So this might sound dumb, but I have been following this post because we are also debating Wisconsin vs Minnesota vs somewhere else, and I am wondering about state tax vs federal tax. I have never lived in a state where you pay state income tax. Is it on top of the federal tax, or is your federal tax rate lower to compensate for the state tax?

Here is the basic way it works in MN. You fill out all your federal tax forms first. If you use 1040 and itemize your deductions, your state income tax withheld on you W2 is deductable and lowers your adjusted gross income for federal taxation. Also note they prevent you from holding back artifically high amount at the state level to increase the deduction amount by adding back the state refund from previous year as income.

When you are done with federal forms you fill out state forms based on your federal adjusted gross income, but they add the amount you deducted for state income tax back in.

It can get even trickier if you live in Wiscoson and work in Minnesota as they both have state income tax.

As a ballbark, you are probably looking at 6.5% of income tax in MN if your income is anywhere near average.

[rcsteiner]

Originally Posted by Clifford63

Here is the basic way it works in MN. You fill out all your federal tax forms first. If you use 1040 and itemize your deductions, your state income tax withheld on you W2 is deductable and lowers your adjusted gross income for federal taxation. Also note they prevent you from holding back artifically high amount at the state level to increase the deduction amount by adding back the state refund from previous year as income.

When you are done with federal forms you fill out state forms based on your federal adjusted gross income, but they add the amount you deducted for state income tax back in.

Georgia does the same thing, FWIW, and I suspect most states with a state income tax follow a similar procedure.

[MeganAK]

Thanks!