More File in Minnesota’s Top Tax Bracket than Expected
ST. PAUL (AP) - More people filed in Minnesota's top income tax bracket than expected in 2013, despite warnings from critics that a tax increase would drive high earners out of the state.
The state's Department of Revenue says the newly formed income tier saw about 6,200 more filers than expected, totaling nearly 61,000.
A law passed in 2013 by the DFL-controlled legislature created the new bracket and raised taxes for individuals making $150,000 or more and couples making $250,000 or more.
Gov. Mark Dayton that the data show fears the rich would flee the state because of the tax hike were unfounded.
But Republican Rep. Greg Davids of Preston says adding the fourth income tax bracket still hurts Minnesota, saying there may have been more of the highest earners without it.