I visited with three well-to-do alumni Saturday at the Carlson School tailgating party before the Homecoming game. Hopefully well-to-do, that is, because the University of Minnesota relies on their philanthropy for support.
The first was a retired corporate executive. He is living well on his pension, dividends and capital gains.
The second alumnus was a retired dentist, successful in his practice and comfortable in his retirement.
The third was a lawyer, a long-time litigator at a well-known downtown law firm. He worked hard and retired well-off.
When Minnesota raises its individual income tax rate from 7.05 percent for income over $33,220 and 7.85 percent for income over $131,970, imagine the extra money Minnesota will take in from just these three rich retirees and other more like them: None! Zippo. Nada.
All three are, by coincidence, residents of Florida, where there is no income tax. They each carefully log less than 183 days a year in Minnesota to avoid residency and income taxation here. They not only donâÄôt pay income tax here, but their major purchases produce Florida sales tax, not Minnesota, and their property taxes go to Florida, not Minnesota.
I am not saying they would have stayed in Minnesota after retirement if Minnesota taxes were lower, but surely a lot more like them will follow if Minnesota taxes go up significantly, and youâÄôre reading an e-mail from one of them.