Minnesota boasts low business taxes
Entrepreneurs considering business formation might do well to head to Minnesota this year. A new study from the Council of State Taxation reveals that the state, which usually has the reputation of high business taxes, is one of the most business-friendly in the nation.
The study shows Minnesota business taxes accounted for just 4.3 percent of the state’s gross domestic product last year. Only 14 other states had a lower tax burden, with the national average being 4.7 percent of the gross domestic national product.
The majority of Minnesota’s business taxes went toward property taxes, according to the study. Individual income taxes for entrepreneurs were less than 8 percent. Moreover, the study shows that Minnesota collected just over $10 billion in all taxes levied on businesses in 2009.
According to the Minneapolis Star Tribune, Governor Tim Pawlenty’s hard movement against tax increases may be responsible for the state’s high ranking. Phil Krinkie, president of the Taxpayers League of Minnesota, told the source Pawlenty has “had a positive impact on businesses in Minnesota.”
Entrepreneurs may take advantage of this good business climate and consider business formation in Minnesota in 2010.