The Numbers
By Mitch Berg
Dave Osmek – a city councilman in Mound, which by the way receives no Local Government Aid, and hasn’t for quite sometime – writes:
I’d like to add my two cents to the whole DFL meme. Consider the following scenerio:
Evil Rich taxpayer A: Owns a nice house out on Lake Minnetonka (valued at $750,000) and his own commercial business (valued at $500,000)
Virtuous Poor taxpayer B: Owns a nice house in St. Paul (valued at $225,000)
Evil Rich taxpayer A pays a property tax rate of 1% on the first $500,000 of value and pays 1.25% on the next $250,000 of value. He also pays 1.5% on the first $150,000 of his commercial value and 2% on the next $350,000 of value.
That’s $8125 in property taxes, and $9250 on the business.
Virtuous Poor taxpayer B pays a property tax rate of 1% on his $225,000 house AND gets a homestead “credit” that further reduces his taxes by another 7% to an effective rate of 0.93%.
That comes down to $2092.
Bear in mind these aren’t income taxes; for all we know, the two hypothetical virtuous taxpayers may well make the same money.
And we’re supposed to swallow the DFL meme that the EEEEEEEEvil rich don’t “pay their fair share”? The numbers just don’t add up!
The DFL is counting on Minnesotans who don’t do things like numbers…
June 29th, 2011 at 6:07 am
“The DFL is counting on Minnesotans who don’t do things like numbers…”
Like every casino owner, the DFL is counting on sheeple not to learn math.
Their Education Minnesota Division is hard at work fulfilling this mission. In a two prong strategy, they are dumbing down the kids while building their sense of entitlement and self-confidence. And since every kid in Minnesota is above average, it must be the fault of ‘rich’ people/evil corporate interests that businesses that did/made things here are heading to places where the dumb work for 1/4 of what the entitled, self-confident dumb will work for here.
June 29th, 2011 at 7:09 am
Like every casino owner and the State of Minnesota, which of course runs a lottery. No wonder the new math/Chicago math is so strong in our schools! :^)
Sorry, couldn’t resist. But that said, it should be noted that, per Stanley and Danko’s “The Millionaire Next Door,” the truly rich are not always those with high incomes and big homes. They’re the ones who defer their pleasures a bit.
Which is why “the rich” often don’t pay that much in taxes. They manage to wait a few years for their enjoyment and pay attention to disincentives like….high income taxes.
June 29th, 2011 at 11:02 am
Anyone with money is sitting this presidency out.
June 29th, 2011 at 11:21 am
“The DFL is counting on Minnesotans who don’t do things like numbers”
And on Minnesotans who don’t do things like morals.
What is the big draw for “taxing the top 2% of income earners in the state” to solve the revenue imbalance? Greed.
Who knew the “Happy To Pay For A Better Minnesota” crowd was actually the “Happy To Have Others Pay For A Better Minnesota” crowd? I think we all did.