In just over two months, we will be face-to-face with tax day. Will Rogers said that “The only difference between death and taxes is that death doesn’t get worse every time Congress meets.” Minnesota residents are well aware of that -- whenever our legislature meets, we lose a little bit more of our hard-earned money.
It’s to the point now where the state comes in at number 5 on Monster.com’s list of “5 States that Will Take the Most of Your Paycheck in Income Taxes.” Their article is geared to folks that are considering relocating to another state and cautions them to take into account how much they’ll pay in property taxes, sales tax and state income taxes.
So, basically, the online job hunting site is dissuading people from moving to Minnesota. Great.
When it comes to which state takes the most out of a resident’s paycheck, New York takes the top spot with an income tax collection per capita of $1,864 per person. The next four are:
- Connecticut -- $1,808
- Massachusetts -- $1,765
- Oregon -- $1,425
- Minnesota -- $1,404
Now that’s just state income tax rates. When they took a look at the highest income tax rates and the highest rates for the middle class (according to the Tax and the Heritage Foundations), California and Oregon come in at number one, respectively.
California has the highest income tax rate in the country, 13.3 percent.
Oregon won the award for the highest middle class tax rate at 9 percent. If you move there you can expect the government, both federal, state and local, to get more than 52.3 percent of your income. That’s insane.
The rest of the list (the first state mentioned is highest in income taxes, the second is highest in middle class taxes) shakes out like this:
2. Hawaii and Maine
3. Oregon and Idaho.
4. Iowa and Hawaii
5. New Jersey and Minnesota
Our middle class tax rate is 7.1 percent. Our corporate income tax – 9.8 percent -- ranks as the third highest in the country.
The news this week showed that in 2013 the state saw more tax returns than they expected for those that received a tax increase so obviously, our high taxes don’t bother the affluent. It’s the middle class, however, that our leaders should be concerned about when they start messing with things like property taxes.