In one of them, corporate and individual taxes are less than half of ours and in the other they are only one third. Still, both of these low-tax states have a substantially smaller gross state product than Minnesota and both have realized slower production growth in the 10 years from 1980 to 90. While some companies have left Minnesota, the majority have chosen to stay rather than going where taxes are lower. The obvious reason is that our skilled workforce has made it more productive to do business here. We invest a third more in public schools, per student, than the other two states.
Educations pays high dividends.
Department of Education data shows that a 10 percent increase in educational attainment increases workforce productivity by 11 percent, while a 10 percent investment in plant and equipment raises productivity by only four percent. Minnesota business people are consistent supporters of the schools. The Minnesota Business Partnership found that all but 10 of its 96 member companies have school programs going. And they're fine - they can be encouraging to teachers and stimulating for students who take advantage of them. But except for a few, they are academic programs which focus primarily on improving classroom instruction and educational equipment.