In order to hold these discussions, both at the Capitol and in our communities, it would be helpful if we were all on the same page about current state of Minnesota taxes.

Unfortunately, this is not always the case; across the political spectrum, misinformation circulates widely.

First there is the issue of Minnesota’s tax rankings versus other states.

Some argue that Minnesota is a "high tax" state, pointing to Minnesota's relatively high income tax rate; however, focusing only on sales and income tax rates ignores important attributes of Minnesota's tax system.

For example, Minnesota's tax system relies less on regressive taxes – like the sales taxes and property taxes – and more on the progressive income tax, than many other states. Yet, because Minnesota has higher median income than most other states, our individual tax burden as a percentage of income is actually lower than most states.

A second issue at the focus of the tax discussion is Minnesota’s climate for attracting and retaining both businesses and employees.

Certainly there are a number of factors that influence where a family may choose to move: tax rates, schooling options, climate, career opportunities, cultural capital, and housing options — all of these contribute to the general "livability" of a place.

A recent editorial in The Wall Street Journal suggested there are destination states and departure states, and taxes, among other criteria, can have a profound influence on where businesses move and grow.

An analysis of data from the United State Census, the Bureau of Economic Analysis, and the Tax Foundation, suggest that taxes are but one component of a dynamic decision matrix for businesses looking to move. Upon closer inspection, pairings between tax rates and destination cities are often counter-intuitive.

There are many metrics for evaluating Minnesota's business climate and economic performance. Recently the Governor's office has cited the Tax Foundation business tax rankings, which lists Minnesota 42nd, based on corporate income tax, individual income tax, sales tax, unemployment tax, and property tax.

While the Tax Foundation rankings are billed as an indicator of business climate, they include no measure of human capital, transportation, workforce skill, regulatory laws, research and development, and many other factors that drive innovation and job creation.

By contrast, in 2006, Forbes issued a 50-state ranking of businesses based on 30 metrics in six categories: business costs, economic climate, growth prospects, labor, quality of life, and regulatory environment.

In this study, Minnesota ranked 14th overall. It is interesting to note that all but one of the Tax Foundation's top five picks were ranked well below Minnesota in Forbes special report on the best states for business. While such studies are informative, I am more concerned with how efficiently our government operates and how our economy is performing relative to our neighbors.

Minnesota legislators must be mindful in creating policies that attract and nurture businesses, and I have been active and vocal in this pursuit. I am the chief author of legislation to expand the research activity credit for businesses.

In my work on the Biosciences and Emerging Technologies Committee I have been a staunch advocate for encouraging business development and growth.

I chief authored legislation endorsed by the Minnesota Business Partnership and the Minnesota Chamber of Commerce to speed Minnesota's transition to single sales apportionment for corporate income taxes.

Last year I voted against the Omnibus Tax legislation that proposed increases in income taxes, and I testified against the Senate proposal to increase commercial property taxes.

My record on supporting Minnesota businesses with sound fiscal policy is clear. I will continue to work with my colleagues to ensure that we budget strategically and efficiently, minimizing the tax burden for Minnesota businesses and families.

I welcome the recommendations of the two commissions in guiding the Legislature next session on moving us forward to improve our tax system.

Bunn (DFL-Lake Elmo) represents District 56A in the Minnesota House of Representatives. She can be reached at (651) 296-4244, by mail at 521 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.Julie.bunn@house.mn.