Minnesota banks on higher taxes, minimum wage as script for growth

Welcome to MinnesotaIt is too early to tell how a recent round of tax hikes and a minimum wage increase will play out in Minnesota, a state where liberal and conservative forces have often swapped control and policies.

But the state’s experience may give pause to a crowded field of Republican presidential hopefuls who largely swear by tax cuts and small government as a recipe for prosperity.

Judged by those standards this state on the Canadian border should be a train wreck in process.

Instead, Democratic Governor Mark Dayton’s Minnesota could become a touchstone in the national debate over how to bolster the middle class – an example of how solid growth and low unemployment can coexist with some of the highest income and corporate tax rates in the country. 

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