As a small business owner, your dollar doesn’t go very far in Minnesota compared to other states.
According to the Tax Foundation’s latest study, Minnesota is ranked No. 30 in the country for low costs. When breaking down the true value of $100, data shows the relative value amounting to $102.56
While the real value may appear minimal, it’s important to understand, view and compare each real value as apples to apples—in other words, higher price levels may correlate with higher average incomes and costs of living, especially so in metropolitan areas.
“This has substantial implications for public policy, which is often progressive with respect to income,” Erica York, an analyst at the Tax Foundation, says. “Many policies–like minimum wage, public benefits, and tax brackets–are denominated in dollars. But with different price levels in each state, the amounts aren’t equivalent in purchasing power.”
The top five overall states/areas: Mississippi ($115.74), Alabama ($115.47), Arkansas ($115.07), West Virginia ($114.16) and Kentucky ($113.90). The bottom five were New Jersey ($88.34), California ($87.41), New York ($86.51), D.C. ($86.28) and Hawaii ($84.46).
Read more about the study here: https://taxfoundation.org/real-value-100-state-2018