I live in a state that has high taxes and government spending. In 2013, our Democratic governor raised taxes on the wealthy and increased spending even more. Despite predictions that this sort of policy would result in a poor economy, Minnesota is doing quite well. Our unemployment rate is 3.7% which basically means if you aren't working, you don't want to have a job. We have a state surplus of over $1 billion dollars. Our GDP is $255 billion dollars.
Today, our state discovered that Republican predictions of a mass exodus of higher taxes on the wealthy have not come to pass.
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.
Grew, you say? Hmm...maybe people like having a better place to send their kids to school and nice roads to drive on.
Let's compare my state to Wisconsin, where Scott Walker has enacted the exact opposite policies of Governor Dayton. The Wisconsin unemployment rate is 4.4%. They have a budget shortfall of $1.8 billion dollars which has forced cuts to the University of Wisconsin system to comply with the balanced budget law. Their GDP is $230 billion dollars. Wisconsin ranks among the top states people are leaving.
I wonder why...:)
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