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Minnesota Tops the States in Reducing Tax Regressivity

No state has made more progress than Minnesota over the last two years in reducing the regressivity of the state-local tax system.

That‘s the key finding in Minnesota’s Progress Against Regressivity, a policy report issued by Growth & Justice and authored by policy fellow Jeff Van Wychen, a veteran fiscal analyst and consultant on state and local government finance. The Growth & Justice report, based on data from the recently published 2015 Minnesota Tax Incidence Study and on comparable data for other states, also elaborates on how progressivity and sufficiency in Minnesota’s tax system can be important for societal health and business growth. Minnesota has outperformed most other states on a host of economic measures in the last two years, including many states whose tax systems declined further toward regressivity.

While Minnesota’s tax structure has moved in the direction of fairness, overall inequality trends continue. In Sunday’s Star Tribune OpEx commentary, Growth & Justice President Dane Smith examines the rise of the term “equity,” and describes how policymakers can elevate this principle as they seek to reduce racial disparities and poverty, and to help those with disadvantages and disabilities to realize their potential and improve their lives.

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