Minnesota finding itself surrounded by lower tax states
North Dakota also has income and property tax reforms on the table. The net result is sure to be lower taxes; and that change will magnify North Dakota’s cost differential with Minnesota, especially once Dayton’s proposed tax increases come on line.
South Dakota, of course, has had a tax advantage over Minnesota for years. If North Dakota starts enjoying one, too, then Minnesota’s economy surely will feel a magnified effect.
But North Dakota enjoys a cost advantage as well. As a right-to-work state, North Dakota tends to pay less for its teachers, police officers and other government workers than Minnesota does.
In effect, that gives North Dakota taxpayers get more bang for their buck.
And thanks to Gov. Scott Walker’s reforms, labor costs in Wisconsin also are on their way down, at least in comparison with Minnesota.
That leaves Minnesota standing alone. Count on Republicans to highlight that isolation at election time — and while the GOP in Minnesota may be down, it certainly is not out.