Comments on: Lesson for Michigan’s future: talent trumps taxes

By: farlane

farlane — Sat, 18 Aug 2007 21:50:03 +0000

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!)

By: Chris Goldschmidt

Chris Goldschmidt — Sat, 18 Aug 2007 19:19:50 +0000

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.

By: farlane

farlane — Wed, 08 Aug 2007 11:09:57 +0000

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.

By: Chris Goldschmidt

Chris Goldschmidt — Tue, 07 Aug 2007 18:21:00 +0000

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.