Detail: Doors, McGregor Public Library
by pinehurst19475
In a recent column in the Lansing State Journal and again on Michigan Radio, futurist and former Michigan Secretary of Commerce Lou Glazer says we need to ask Where do we want to go from here? What sort of economic future do we want to have? and What will policies we pursue make us into? He looks at Minnesota and Alabama as possible futures, saying:
Alabama has the lowest combined state and local taxes in the nation, ranking 50th in both taxes as percentage of personal income and taxes per capita. They have the lowest taxes - and a per capita income $3,000 less than Michigan.
Minnesota's per capita taxes are $1,400 higher than Alabama - but its per capita income is $7,700 a year higher than Alabama. So much for the theory that low taxes leads to a strong economy!
The bottom line: You can't get Minnesota's economy by adopting Alabama's policies.
Read Glazer: What's the model - Alabama or Minnesota? in the LSJ and listen to Lou's interview with Jack Lessenberry. You can then read Jack's essay Michigan's Future in which he proposes the scandalously liberal concept that high taxes make for more interesting places to live and work. There's a comment there about thinking of "taxes" as "user fees" that makes a great point.
4 Comments
What is failed to mention in this article is that Alabama's per capita income growth is a good two percentage points higher than Minnesota, a trend that is actually accelerating.
So while the author does note the disparity between individual households in Minnesota and Alabama, the missing piece is how quickly the gap is closing. In terms of personal income growth, Minnesota is ranked 46th among all states, while Alabama is ranked 12th.
Not exactly a ringing endorsement of Minnesota fiscal policy if you ask me.
Correct me if I'm wrong, but Alabama is starting from a terrible per capita income while Minnesota's is quite strong.
I think it's all about the overall quality of life and services and I think that Minnesota is doing pretty well there.
Actually, farlane, if trends continue, Alabama's per capita income will exceed that of Michigan in just three years--With much lower taxes per household, and a significantly lower cost of living.
It is fair to point out where Alabama was. However, we are very, very quickly closing the gap. I simply point this out, chiefly because the author of this article seems to believe that Minnesota's tax policies are somehow superior, when in fact Alabama's overhaul in government over the past decade have led to a wholesale acceleration of growth relative to the rest of the country.
The article with the figures isn't available online any longer, but I believe that the thrust was comparing overall quality of life (education, public health, life expectancy).
I really don't know what the numbers are, but I recall that Minnesota's looked a lot better than Alabam's (or Michigan's!)
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