This was the main topic of discussion amongst 400+ tax professionals at TEI’s 29th Annual President’s Seminar in Minneapolis last week. In his opening address, Myron Frans, Minnesota Commissioner of Revenue addressed the group on the state’s complex tax policy and unique challenges, including demographic and economic changes impacting tax revenue.
He emphasized that over time, the mix of taxes in Minnesota has become unbalanced and utilized actual stools to visually represent the imbalance of property, income, and sales tax figures in 2010 of 40%, 33%, and 27% respectively. At these numbers, the stool fell to the ground. Whether the current tax system is good or bad is debatable, depending on which rates are being considered. Minnesota has a low effective tax rate on new investment, but one of the highest statutory rates.
The commissioner closed the session by asking for feedback from the group in achieving tax reform, pointing out that a tax system that is fair, simple, and supports growth is the ultimate goal.
For a more in-depth look at his presentation, click here.
Share your ideas on acheiving tax reform in Minnesota by commenting below.