Here is a report from our Friends at the Tax Foundation on this year’s Tax Freedom Day. You can read the full report here: Tax Foundation Special Report No. 190 

 You can also get this year’s “Facts & Figures” here.

Tax Freedom Day® (for the nation) will arrive on April 12 this year, the 102nd day of 2011. That means Americans will work well over three months of the year, from January 1 to April 12, before they have earned enough money to pay this year’s tax obligations at the federal, state and local levels.

Tax Freedom Day arrives three day later in 2011 than it did in 2010, but nearly two weeks earlier than in 2007. This shift toward a lower tax burden since 2007 has been driven by three factors:

· The Great Recession has reduced tax collec­tions even faster than it has reduced income.

· President Obama and the Congress, after a long debate, extended the Bush-era tax cuts for two additional years.

· As part of the extension agreement, the Making Work Pay tax credit was replaced with the 2 percent reduction in the payroll tax.

Despite these tax reductions, Americans will pay more in taxes in 2011 than they will spend on groceries, clothing and shelter combined.

Minnesota’s Tax Freedom Day is April 16th this year. You can click to see how Minnesota is not poised to compete with many of our neighbors and other states.
Minnesota’s 2011 Business Tax Climate Ranks 43rd
Minnesota ranks 43rd in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: North Dakota (25th), South Dakota (1st), Iowa (45th) and Wisconsin (40th). 

Federal Tax Burdens and Expenditures: Minnesota is a Donor State  Minnesota taxpayers receive less federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Minnesota citizens received approximately $0.72 in the way of federal spending. This ranks the state 46th highest nationally and represents a decrease from 1995 when Minnesota received $0.78 per dollar of taxes in federal spending (44th highest nationally). Neighboring states and the amount of federal money they received per dollar of federal taxes collected were: North Dakota ($1.68), South Dakota ($1.53), Iowa ($1.10) and Wisconsin ($0.86).