A new analysis from Gov. Tim Walz’s own Department of Revenue shows that his tax proposals would hurt the poorest Minnesotans the most. The Tax Research Division of the Minnesota Department of Revenue released its tax incidence analysis Tuesday, and looked at the combined changes that would be made under Walz’s tax, transportation, and health and human services bills. Overall, the report found that the combined increase in tax collections under Walz’s budget proposal is estimated to be $2.372 billion in 2021, of which $2.104 billion is “borne by Minnesota residents.” The average increase in total taxes paid would be 6.52 percent, though the increases would be higher for the bottom five income brackets than the top five. Specifically, the analysis shows that the lowest income bracket would see an 8.5 percent increase in tax burdens while the highest income bracket would see a 4.3 percent increase. Looked at a different way, Minnesotans’ state and local tax burden would increase by an average of 0.76 percent of income. The report, however, states that “the increased tax burden is largest for the lowest deciles and declines at higher income ranges.” The tax burden for the top one percent of earners…
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