Tuesday, November 27, 2018

Minnesota vs. Wisconsin vs. Iowa

Here in Minnesota, we have our problems... for instance, most egregiously, we have a huge gap in well-being between white people and black people in almost every way that can be counted (as described in this recent story). What we don't have, though, is anything to envy about our neighboring states, Wisconsin and Iowa, despite the ways they are sometimes portrayed as lower-taxed or better off in some or many ways, usually by Chamber of Commerce types.

Here's a detailed comparison, with references and links in the original, by Joe Atkins, a county commissioner from one of the Twin Cities suburbs:

I recently posted a comparison between Wisconsin with Minnesota, using only documented figures and rankings. A couple of Iowa friends suggested both Minnesota and Wisconsin would pale in comparison to the Hawkeye State. So I checked. Below are the results.

TAXES. For 2018, an average family with a median annual income of $55,754 would pay $7,593 in state and local taxes in Wisconsin, $7,202 in Iowa, and $6,453 in Minnesota.

PROPERTY TAXES. Minnesota residents pay $2,155 in property taxes on a median value home of $184,700 home. Iowa residents pay $2,762 on the same-priced home. Wisconsin residents take the prize for the highest property taxes; they pay $3,602 on the same $184,700 home.

INCOME. The median household income in Iowa is $54,736, while an average Wisconsin household earns $55,638, and an average Minnesota household earns $63,488.

JOB GROWTH. Job growth since December 2010 has been noticeably stronger in Minnesota than in Wisconsin or Iowa, with Minnesota experiencing 10.1% growth in employment, compared with 8.7% growth in Wisconsin and 3.9% growth in Iowa.

BEST STATE FOR BUSINESS. Minnesota ranks as the 6th best state for business, with Wisconsin coming in 17th and Iowa 18th. Source:

FORTUNE 500 COMPANIES. Minnesota is now home to 19 companies on the Fortune 500 list, up from past years, according to Fortune. Wisconsin is down to nine, having previously been home to 10; and Iowa is down to two, having previously been home to three. Notably, Minnesota is also home to the nation's largest privately-owned company: Cargill. [And] CHS of Inver Grove Heights, which is in the Fortune 100 with over $31 billion in annual revenues. CHS, alone, is bigger than any company in Wisconsin or Iowa. [Note: CHS is an agricultural co-op, the largest in the country.]

DEBT. The State of Minnesota's debt equals $2,768 per resident, while the State of Wisconsin's debt equals $4,278 per resident. The State of Iowa’s debt is $1,821 per person.

GAS TAX. The gas tax is 15% higher in Wisconsin than in Minnesota. At 32.9 cents per gallon, Wisconsin has the 19th highest gas tax in the nation. Minnesota’s gas tax is 28.6 cents per gallon, ranking #28 in the country. Iowa is in between at 30.5 cents per gallon, ranking 23rd highest in the country. [I, of course, think Minnesota's gas tax should be higher than it is, and this shows there is room to increase it without passing the neighbors.]

MURDERS. There were 186 murders in Wisconsin in 2017. Minnesota had 113 and Iowa had 104. [Note: Minnesota and Wisconsin each had 5.6–5.8 million people in 2018; Iowa has just over 3 million.]

FARM PRODUCTION. Minnesota ranks #5 nationally. Wisconsin farmers come in at #9. Iowa leads all three states, second only to California.

QUALITY OF LIFE. Wisconsin ranks 24th. Iowa is 7th. Minnesota is 3rd.

CHEESE. Wisconsin farmers make 2.8 million pounds of cheese annually, earning them the #1 ranking in the nation, while Minnesota ranks #6 and Iowa is 8th. Wisconsin was second only to California in milk production, with Minnesota ranking #9 and Iowa well back.

OBESITY. At 28.4%, Minnesota again has the lowest rate of obesity in the Upper Midwest, according to 2017 figures released recently by the U.S. Centers for Disease Control and Prevention. For the first time, it also has the lowest rate among 12 Midwestern states. Wisconsin falls in the middle of the pack, at 32.0%, and Iowa leads the way at 36.4%.

LIFE EXPECTANCY. Hawaiians rank #1 with an average life expectancy of 81.3 years, with Minnesotans coming in second at 81.1 years, Wisconsinites are 11th at an even 80.0 years, and Iowans 16th at 79.7 years.

BOND RATING. In late July, Minnesota earned the gold standard of bond ratings - AAA - from both Standard & Poor's and Fitch. Iowa also has a AAA rating. Wisconsin trails with a AA rating from Standard and Poor's and a AA+ from Fitch, though the Badger State's ratings are up from prior years.

EDUCATION. In states where all students take the ACT, Minnesota ranks #1. Wisconsin ranks #4. Not all students take the ACT in Iowa.

With lots of family and friends in both Wisconsin and Iowa, I wish our neighbors to the east and south nothing but the best. Except when their teams play ours.
(I omitted the supporting links and the parts about football, beer, and details specific to the writer's county.)

To summarize all that: Wisconsin makes more cheese, Iowa has lower state debt per resident, and otherwise, Minnesota comes out ahead or ties on everything else.

Oh, and by the way: all of that record-straightening reminds me of a recent analysis in the Star Tribune about taxing income from Social Security (which Minnesota currently does, while 28 other states that have income taxes do not). The writer, Lori Sturdevant, does a thorough job of addressing all the arguments made against taxing that income, and it may be one of my favorite local piece of writing lately.

I'm glad to have these facts filed away where I can find them next time someone says Minnesotans are overtaxed and "Boohoohoo, what do we get for our money?".

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