Financial news reports frequently give income averages or median incomes and are listed by individual states or national. In a January 2020 report it listed Minnesota with a Median household income of $68,388. What was also interesting in the article was the 34.58% total taxes paid on this income. This 34.58% tax rate was from a variety of sources, including income, property taxes, sales taxes, a variety of so called “sin” taxes, local sales tax, gas tax, etc. etc.
It is interesting that when government talks about taxes they only talk about a single type of tax and never the combined impact of all taxes. Is it just their way of misleading many of us? It is no wonder so many people have trouble making economic headway when over a third of their income goes to taxes.
Kent Rees
Emily
