Study: Middle-, lower-income Minnesotans pay 12.3 percent in taxes. Wealthiest pay 10.3 percent.
The high-octane political fight over taxes at the Capitol got a new source of fuel Wednesday: a statewide study that finds lower- and middle-income households are hit hardest by Minnesota's tax system.
"Minnesota's tax system is more regressive than it was a decade ago," acting Revenue Commissioner Dan Salomone said Wednesday. "Despite a slight improvement over the last study, the system remains notably more regressive than the historical average since 1991."
The study found that 90 percent of the state's earners paid an average of 12.3 percent of their income in state and local taxes in 2008. The wealthiest 10 percent of households earning more than $130,000 paid an average of 10.3 percent.
The study also found the gap between top earners and the rest of the population has widened over the past decade and that local property taxes -- a highly regressive tax -- make up a larger share of the overall tax mix.
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