Higher Taxes in Minnesota?

House passes tax bill

Why it is a poor idea for Minnesota: Many of the very wealthy can easily establish residency out of state (say Florida) and avoid Minnesota income taxes altogether. An example of this residency change is here: TCF's Cooper flies the coop to Florida. I have a friend who is a millionaire and already lives in Florida for almost half the year. All he has to do is to live in his Florida home for another 2 or three weeks and he will be a Florida resident and not pay any income taxes in Minnesota. Higher income taxes could very well drive wealthy retirees out of Minnesota. Additionally it would discourage businesses from retaining headquarter (executive) jobs in state.

Why it won't happen: Governor Pawlenty will veto it.

Excerpt:

"Tax, tax, tax. Spend, spend, spend," said Rep. Paul Kohls, R-Victoria. "Minnesotans beware, the House Democrats are trying to pick your pocket."


"This is one of the most massive, invasive, pervasive, poor-folk hurtin', middle-class back-breakin', tax-the-rich bashin', class-warfare baitin' tax increase I have ever seen in my time as a state representative," added 17-year Republican Rep. Steve Smith of Mound.


Pawlenty reiterated his tax stance during his weekly radio show Friday.


"We didn't raise taxes when we had a huge deficit," Pawlenty said. "I don't know why we'd do it now when we have a surplus."