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I was born in Minneapolis, graduated from the University of Minnesota and have lived in the Twin Cities essentially my entire life. So when I sold my business and took early retirement in 2017, planning to get away from the Minnesota winters, I always thought I'd remain a resident of the state I love that had provided me so much.
This year, though, I'm moving my residency to Florida. This isn't LeBron James taking his talents to South Beach, but when I hear DFL Rep. Andy Smith claim it's a "myth" that people are fleeing Minnesota, I think an explanation of my reasoning is relevant.
Those reasons start, but don't end, with taxes. Even in the face of a massive $17 billion surplus, the Minnesota Legislature just raised my sales tax and gas tax, created a new deliveries tax and even flirted with raising my income tax. Minnesota already has the sixth-highest income tax rate in the country at 9.85%. Contrast that with Florida, which has no state income tax.
Even so, I could remain comfortable paying around 10% of my net income to Minnesota if I was confident the money would be wisely spent and the rate relatively constant. But the current trifecta of DFL control in St. Paul boasts that taxes are a "wonderful tool" to fund their new massive growth in state spending on programs like "free" college tuition, which won't be free to me.
Gov. Tim Walz has proposed an additional 4% surcharge on capital gains over $1 million. And even more ominously, Minnesota legislators are studying a new "wealth tax" on unrealized annual appreciation of assets owned by the wealthy. When DFL Sen. Ann Rest says her party seems to have "an insatiable appetite to raise taxes," I believe her.
DFL Rep. Aisha Gomez claims she is just asking the higher income people "to contribute a little more to the public good." As my total tax rate creeps toward 50%, I'd like to hear the number that will constitute "a little more" once Minnesota returns to a California-like deficit, even before paying reparations.