Correlation Does Not Equal Causation
But it sure disproves a bunch of bullshit arguments that low taxes equal more prosperity:
Minn. No Longer Among Top 10 Most-Taxed States(AP) Minnesota has dropped out of the top 10 states in per capita tax rankings for the first time in about 25 years, according to an analysis by an arm of the nonpartisan Minnesota Taxpayers Association.
Minnesota now stands 12th in the nation in state and local taxes as well as in government spending, according to the report from the Minnesota Center for Public Finance Research.
And when taxes and spending are measured as a percentage of personal income, the numbers really plummet. By that measure, the state has fallen to 23rd in taxes and 31st in state and local government spending, said the report released Monday.
While the numbers reflect years of GOP Gov. Tim Pawlenty's no-tax-increase policies and budget restraint, they also show that local governments appear to have reined themselves in as well.
Minnesota has long ranked in the top 10 in most measures of tax burden. This report marks the first time since 1979 that it has dropped below the top 10 in spending per person by state and local governments and the first time since 1981 that it has dropped from the top 10 in taxes per capita.
. . .Pawlenty said the new numbers show his administration escaped the ranks of the highest-taxed states "by holding government accountable and setting priorities.
"That's good news for taxpayers and a signal to those who want to grow jobs in Minnesota that we're open for business," the governor said in a statement.
Pay attention, because that last line is important:
Minnesota's Jobless Rate Tops National Rate In May(AP) This is one national average Minnesota didn't want to top.
Minnesota's unemployment rate in May was higher than the national average for the first time since the state began tracking those numbers, the Department of Employment and Economic Development said Tuesday.
The state unemployment rate in May was 4.6 percent, up from 4.5 percent in April. Nationally the unemployment rate was 4.5 percent in both months.
But the state also said it added 41,500 jobs over the past year, and the number of Minnesota jobs grew slightly faster than the national average.
Toby Madden, regional economist for the Federal Reserve in Minneapolis, said the apparent discrepancy is probably explained by self-employed workers, especially those in the hard-hit construction industry. Hard times for them would show up in the unemployment number because it's gathered by a phone survey, while the number of jobs is reported by employers.
Minnesota has seen a "huge drop in housing starts last year, and we're continuing to see some deterioration in housing starts this year," he said. "The construction industry is obviously hurting the employment picture."