Ever since Governor Dayton passed one of the highest taxes in the nation on people earning over about $150,000 a year, conservatives have been predicting an exodus of the productive class.
The Minnesota left is doing cartwheels over “data” showing it’s not happened…
…sort of. I add emphasis:
The ranks of the very rich are growing in Minnesota, despite a controversial tax increase that singles out the biggest earners to pay more.
Critics predicted that the ultra-affluent would flee after Gov. Mark Dayton secured 2013 passage of a new income tax tier of 9.85 percent on individuals who make more than $156,000 a year. But the latest data show that the number of people who filed tax returns with over $1 million in income grew by 15.3 percent in the year after the tax passed, while the new top tier of taxpayers grew by 6 percent.
So many holes in this “story”:
People making over a million a year – the “ultrarich” – can live anywhere they want; the Twin Cities are a great place to be rich; good quality of life with lots of bigger-city amenities, and your dollar, after taxes, still goes a ways. That’s why so many big corporations have their headquarters in the Twin Cities, even though they haven’t hired a non-service blue-collar worker in Minnesota in decades; it’s a great place to be a CEO.
As to the number of people in the >$156K tax bracket rising? So what? As the value of the dollar drops, and inflation creeps in, more real estate agents, dentists, software architects, insurance salespeople and the like find their incomes creeping upward from $145K to $156K.
But you have to then ask:
- How many of them hit that $156K mark, stew on it for a year or so, and decide to move to Hudson or Fargo or Superior?
- How many more would have reached that threshold if it weren’t for the tax hike?
The answers, by the way are “anecdotally, many” and “the Strib, being Tina Flint-Smith’s waterboys, sure aren’t going to tell us”.