BusinessWeek Uses Tax Foundation's State and Local Tax Burden Rankings

"Minn. shutdown a battle over big-spending legacy"

By Patrick Condon

Facing Republican demands to limit enrollment in assistance programs and trim historically generous state benefits, Democratic Gov. Mark Dayton has a frequent response: "That is not Minnesota."

The remark sums up one side of the wildly diverging views between Dayton and Republicans about whether Minnesota should preserve its reputation as a progressive state where taxes are high but the vulnerable are protected. That dispute underlies a government shutdown that hit its seventh day Thursday.

What Democrats see as the popular local saying "Minnesota Nice," Republicans see as unchecked and irresponsible government growth fueled by taxes they say are crippling to businesses that create jobs.

...

In terms of tax burden, Minnesota lands higher on most lists. The nonpartisan Tax Foundation ranked Minnesota seventh in 2009 in state and local tax burden per capita. The group put Minnesota 43rd in terms of tax climate favorable to businesses, a statistic Republicans cite often.

When it comes to services provided, Minnesota ranked 15th out of 50 in the percentage of general fund spending that goes to Medicaid, public assistance and other cash assistance programs. Minnesota's percentage was 18.5 percent in 2009, according to the Kaiser Family Foundation, about half of places like Massachusetts and New Hampshire but significantly higher than Wyoming, Utah and Texas—which trailed the pack at 5.4 percent.

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