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The exodus has not begun

As the eternal argument begins again in the Legislature – tax cuts versus spending cuts – some information from the state Department of Revenue seems to refute one of the arguments against taxing the wealthy.

Tax foes argue that increased taxes on the wealthy will simply drive the rich to lower-tax states. Job creating businesses will leave the state to escape the onerous tax burden, the argument goes.

But according to a Minnesota Public Radio report by Tom Scheck, 6,230 more Minnesotans filed in the top income tax bracket than expected in 2013, after Mark Dayton and the DFL-controlled Legislature raised taxes on individuals making $150,000 a year, and couples making at least $250,000 a year.

One year, of course, does not create a trend. Pulling up stakes and moving to another state is not an easy decision to make for anyone, let alone a business. Let’s see what happens to the number of filers after two or three years of higher taxes.

We’ve always suspected that higher snow drifts have more to do with people deciding to leave Minnesota than higher taxes. Minnesotans have proven themselves capable of enduring a lot, weatherwise. Perhaps that applies to the tax climate as well.

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