At 08:53 AM 9/13/2000 -0500, Jon Elland wrote:
>
>What is the highest income tax rate in the state? And
>what was the highest rate historically?
>
>Jon elland
>bryant
By poking around in the Department of Revenue web site at
http://www.taxes.state.mn.us/laws/00bull.html
I found the following about the 2000 income tax cut:
"The bottom bracket rate was reduced from 5.5 percent to
5.35 percent, the middle bracket from 7.25 percent to
7.05 percent, and the top bracket from 8.0 percent to
7.85 percent."
So the top rate currently is 7.85 percent. The 1999 tax cut
had this breakdown:
"Minn. Stat. � 290.06, subd. 2, paragraphs (a), (b), and (c),
were amended to reduce the income tax rates from 8.5 percent
to 8 percent for the highest income tax bracket, from 8 percent
to 7.25 percent for the middle bracket, and from 6 percent to
5.5 percent for the lowest bracket."
So over the past two years the income tax has gone from 6/8/8.5 down
to 5.35/7.05/7.85, down by .65/.95/.65.
For single filers, these rates are given to the following income ranges:
(1) On the first $17,250, lowest rate
(2) On all over $17,250, but not over $56,680, middle rate
(3) On all over $56,680, highest rate
For married filers, they're:
(1) On the first $25,220, lowest rate
(2) On all over $25,220, but not over $100,200, middle rate
(3) On all over $100,200, highest rate
(Married filing separately, just divide in half.)
(These thresholds adjust with inflation, btw.)
So if you're married and make $200,000, your effective income tax
rate is about (25,000*.0535 + 75,000*.0705 + 100,000*.0785)/200,000,
or about 7.24 percent. Two years ago, that would have been 8 percent.
Taxes on this wealthy family would have gone down from $16,000 to
$14,480.
An unmarried person with $15,000 in income would have paid exactly
5.35% on all of it, down from 6% two years ago. So their taxes would
have gone from $900 to $802.50.
So it's progressive, but not very. Still, it's better than the other
two taxes, which are actively regressive.
I'd love it if anyone out there could hook me up to reliable sources
of information on how much people of various incomes tend to spend on
sales and property taxes.
--
Steven C. Anderson 612-722-6658 [EMAIL PROTECTED]
The Independence Party Candidate for Minnesota Senate, District 62
http://www.SteveAnderson.org/
