On lobby day, Service Employees find bipartisan support

Rep. Denny McNamara offers support for SEIU home care workers like Rosemary Van Vickle (red coat), who are pushing lawmakers to OK their tentative contract agreement with the state.

Rep. Denny McNamara and other legislators pledge support for SEIU home care workers like Rosemary Van Vickle (red coat), who want lawmakers to OK their tentative contract agreement with the state.

 

A bipartisan group of Minnesota legislators lined up on the Capitol steps today to show support for a bill to ratify and fully fund home care workers’ first contract with the state.

Winning legislative approval for the contract, ratified by members of the newly organized unit in voting last month, is one of a handful of priorities members of the Service Employees International Union talked with their lawmakers about today during the union’s annual lobbying push.

Union members at a (mercifully) brief outdoor rally laid out other top priorities, including equitable funding for the state’s public schools and legislation enabling all Minnesotans to obtain driver’s licenses, regardless of immigration status.

SEIU Local 26 member James Matias emceed the rally on the Capitol steps.

SEIU Local 26 member James Matias emceed the rally on the Capitol steps.

Rep. Denny McNamara, a Republican from Hastings, said progress on the license issue would be a “small step” in fixing the nation’s broken immigration system. He also pledged to carry a bill in the House to ratify the pending contract for home care workers.

“The contract offers some really great things going forward, and I’m really proud to be a part of it,” McNamara said.

Indeed, the contract would raise the wage floor for 27,000 home care workers statewide to $11 per hour. It would fund training opportunities, protect workers against lost wages and provide full-time workers with five days of paid time off annually.

“These important gains won’t happen until the Legislature funds and ratifies our contract,” Crosby home care worker Rosemary Van Vickle said. “We need lawmakers to do the right thing.”

Franken blasts GOP effort to undermine union election reforms

video via The Uptake

U.S. Sen. Al Franken took a stand Tuesday against a Republican-led effort to block reforms poised to streamline and modernize the process for determining union representation in most workplaces.

In a speech on the Senate floor, the Minnesota DFLer defended new rules approved by the National Labor Relations Board last year. The changes, set to take effect April 14, include allowing petitions for union elections to be filed online, consolidating the post-election appeals process and requiring equal access to voter contact lists for management and the union.

“Workers need this rule to ensure a fair, effective process, free of excessive delays,” Franken said.

But a resolution, passed by the Republican-controlled Senate on a party-line vote, would use the Congressional Review Act to thwart NLRB reform. If both the House and Senate pass a resolution disapproving of the rule, it would go to the president, who could then overturn the rule or veto the resolution.

Even if the president exercises his veto to uphold the rule, business groups are already challenging it in court.

That’s no surprise, Franken said, as employers long have been exploiting the old system, using stall tactics and endless appeals to prevent workers from exercising their rights.

“Too often, loopholes are being exploited to prevent workers the freedom to decide if they want to form a union,” he said. “Today, 35 percent of the time that workers file a petition for a union election, they never even get to have an election.”

The floor speech was not Franken’s first act of support for workers’ right to a better organizing process. In January, he and 15 other senators signed onto a letter urging the NLRB to “stand strong against efforts to undermine” the reforms.

“Workers deserve to have a union representation election process that is free of stalling tactics and intimidation,” the senators wrote to NLRB Chairman Mark Pearce. “We believe this rule will restore balance and certainty to the union election process and strongly encourage you to vigorously defend this rule in the face of such challenges.”

UPDATE 03/20/15: The House also passed the resolution, meaning the fate of the rule changes – for now – is up to President Obama. In a statement released yesterday, AFL-CIO President Richard Trumka called on the president to exercise his veto power:

Today’s vote by House Republicans against the NLRB’s common-sense modernization of its election rules is a direct attack on workers and their right to be heard in the workplace.

Working men and women want an agenda from their Congressional leaders that raises wages and grows our middle class. Instead, they have gotten Republican policies that roll back progress and silence workers while protecting their biggest donors.

President Obama is right in his commitment to vetoing this harmful legislation, and Congressional Republicans should focus their efforts on lifting workers up instead of shutting them out.

Unions: Surplus more proof Minnesota is on right track

mnaflcioMinnesota’s projected $1.9 billion state budget surplus, announced today by Minnesota Management and Budget Commissioner Myron Frans, is proof that progressive policies pushed by DFL lawmakers over the last two years have helped foster economic growth, the state’s unions said.

The Minnesota AFL-CIO, the state’s largest labor federation, representing more than 300,000 union members, said the surplus is the result of reforms made by DFLers in 2013 and 2014.

“Nearly two years ago, Gov. Mark Dayton and DFL legislators passed a budget that erased a long-term deficit while investing in jobs and education by asking the richest Minnesotans to pay their fair share in taxes,” Secretary-Treasurer Steve Hunter said. “Today, Minnesota’s state budget has a nearly $2 billion surplus and our economy is leading the nation.”

AFSCMECouncil5Eliot Seide, director of AFSCME Council 5, the state’s largest union of public employees, said the surplus “comes from more Minnesotans working than ever before and from more of them earning higher incomes than ever before.”

“It proves that fair taxes, decent wages, and wise investments in jobs and education have helped Minnesota create the 5th fastest growing economy in the nation,” he added.

But labor leaders warned against calls from some lawmakers to “blow the surplus on tax breaks for billionaires and big businesses,” Seide said.

Instead, lawmakers should pass a budget bill that makes needed investments in transportation, Seide said.

“We need a 10-year plan with new revenue to repair our crumbling roads and bridges and improve our transit system,” he said. “Using the budget surplus and other short-term solutions is a band-aid on a problem that gets more expensive with each year of delay.”

Dayton will present his budget proposal to the Legislature on March 9.

The budget forecast issued today increased the projected state surplus by $832 million. Dayton said he would propose dedicating about half of those funds – $444 million – on universal pre-kindergarten and a higher-education tuition freeze.

“I propose that we invest our collective good fortune in our collective better future, in education and transportation,” he said. “For ourselves, for our children, and for our grandchildren. And for the generations that will follow. Since we may not have the same opportunities in the years ahead, it’s even more important that we do it now.”

Lawmaker calls on Target to follow Walmart’s lead, raise workers’ wages

Rep. Joe Atkins

Rep. Joe Atkins

After relentless pressure from workers and the community, Walmart announced last month it will raise minimum pay for its workers to $9 an hour in April and $10 an hour by February 2016.

Now, one Minnesota lawmaker is calling on Minneapolis-based Target to follow Walmart’s lead.

Rep. Joe Atkins, lead DFLer on the Minnesota House Commerce Committee, issued a statement today urging Target to include a commitment to raising wages to $10 per hour in its announcement of fourth-quarter earnings tomorrow.

Wal-Mart’s announcement that it will be increasing its lowest employee wage to $10 per hour is not only welcome news for Wal-Mart employees, but good for business at Wal-Mart, good for the retail industry generally, and good for the State of Minnesota.

Atkins, who represents House District 52B in the southeast Metro, cited research by MIT professor Zeynep Ton, an expert on the retail sector, who found that businesses that make an investment in their retail workforce find that well-paid, knowledgeable, and experienced employees are a sales driver. Atkins also pointed to high-wage retailer Costco, where sales per employee are double that of low-wage rivals.

“It may seem counterintuitive, but retailers that pay higher wages make more money. Overwhelming evidence shows paying higher wages in the retail sector results in higher sales and higher productivity.”

Walmart’s decision to raise its minimum wage will benefit 500,000 hourly associates nationwide. It’s a reaction to a steady wave of organizing among Walmart associates, including strikes in more than 100 cities last year, the United Food and Commercial Workers union said.

“This is not an act of corporate benevolence,” UFCW President Marc Perrone said. “It would not have been possible without the courage of countless workers who are standing together, taking risks, and demanding wages and schedules that can support their families. Walmart is responding directly to calls from workers and their allies to pay a living wage.”

Workers: Fair scheduling measure would restore work-life balance

Hourly workers listen as Rep. Rena Moran (second from left) describes her bill to bring balance to the state's work scheduling laws.

Hourly workers listen as Rep. Rena Moran (second from left) explains her bill to bring balance to the state’s work scheduling laws.

Pushing back against an upswing in reports of Minnesota workers struggling to meet their employers’ increasingly irregular scheduling demands, a coalition of worker-advocacy groups today unveiled legislation to bring fairness to the state’s workplace scheduling laws.

The House bill, authored by DFL Rep. Rena Moran of St. Paul, would require employers to provide hourly employees with their work schedules 21 days in advance, compensate workers whose shifts are cancelled within a 24-hour window and guarantee workers have access to adequate rest between shifts.

“This bill would make sure that employees who are forced to make themselves available to an employer’s scheduling needs are compensated accordingly and able to count on at least a minimum income every payday,” Moran said at a press conference in St. Paul earlier this week.

[Click here to take action in support the fair scheduling bill by e-mailing your state lawmaker.]

Several low-wage, hourly workers who stand to benefit from the legislation joined Moran, including members of the Twin Cities-based worker center CTUL, Minneapolis-based Neighborhoods Organizing for Change and Working America, the AFL-CIO’s outreach initiative to non-union workers with more than 280,000 members in Minnesota.

Andy Barno-Iversen, a member of Working America, explains the toll "clopening" – working consecutive closing and opening shifts – takes on workers and their families.

Andy Barno-Iversen describes the toll “clopening” – working consecutive closing and opening shifts – takes on workers and their families.

Scrambling to get hours

Workers took turns at the podium venting their frustrations with practices gaining popularity among fast-food, retail and other service-sector employers, from “just-in-time” scheduling that allows managers to call in staff on a moment’s notice to “clopening,” Andy Barno-Iversen’s term for back-to-back shifts that ended late and began early the next morning.

Barno-Iversen described working full-time at a Minneapolis co-op grocery while also studying at the University of Minnesota. Twice each week, he would get home from work at 10 p.m. after closing the store, then go back to work by 4:30 a.m. the next day to open.

“I was exhausted,” the Working America member said. “I ended up dropping out of class because my academic performance suffered so badly. My work performance suffered.”

His department has since eliminated “clopening,” Barno-Iversen said, “but thousands of Minnesota retail workers, students and families do have to deal with those scheduling issues… To amend that is just a simple act of consideration.”

Other hourly workers recalled watching their paychecks shrink after their employers switched from conventional scheduling to on-call, “flex,” or “just-in-time” scheduling.

CTUL member Bobby Brown said his hours at a McDonald’s in Bloomington have dried up to the point where his last paycheck was $14. Ronda Jama, a wheelchair agent at Minneapolis-St. Paul International Airport, used to work four days per week; now she works two – and waits “on call” in case AirServ, her employer, makes more hours available.

“It changed the cycle of our life,” Jama said. “It’s hard because we are on call right now. They call you whenever they want you.”

Bobby Brown's last paycheck from McDonald's amounted to $14.

Bobby Brown’s last paycheck from McDonald’s amounted to $14.

Both Jama and Brown earn minimum wage, $8 per hour. The employers most likely to utilize aggressive scheduling practices, Working America State Director Bree Halverson said, are also most likely to pay low wages.

“Unpredictable hours make economic mobility and achieving the American Dream even harder, especially if you’re already struggling to get by,” Halverson said. “Minnesota families need 21st-century scheduling policies that keep up with the changing nature of today’s workplace.”

‘Freedom and stability’

Moran’s proposal to bring fairness to workers’ schedules is another variation on an encouraging theme at the Capitol this session, with lawmakers looking to provide workers – and their families – with the stability and security they need to ensure a healthy work-life balance.

The day after advocates unveiled the scheduling bill, House DFLers rolled out their Working Parents Act, pulling together earned sick and safe time, wage theft, paid family leave and scheduling bills into an all-inclusive measure.

Moran called scheduling fairness “one brick in a road to a better life.”

“This bill is an important first step toward bringing more freedom and stability to employees who work hard, who want to receive hourly wages and who need to plan for their future and the future of (their) families,” Moran said.

In nod to organizing efforts, Dayton appoints AirServ worker to MAC

Airport workers and their supporters march outside Terminal 1 at Minneapolis-St. Paul International Airport during a week of action targeting low-wage employers.

Airport workers and their supporters marched outside Terminal 1 at Minneapolis-St. Paul International Airport, where organizing efforts have focused on raising wages.

Low-wage workers at Minneapolis-St. Paul International Airport now have a voice on the airport’s governing body, thanks to Minnesota Gov. Mark Dayton.

Last week Dayton filled two vacancies on the Metropolitan Airports Commission, which owns MSP and six smaller airports in the Metro. One of Dayton’s appointees, Ibrahim Mohamed, works as a cart driver for AirServ, a subcontractor that handles passenger services for Delta Air Lines. He earns the state’s minimum wage, $8 per hour.

Mohamed, a Rosemount resident who has worked at MSP Airport for 11 years, is the first Somali-American to serve on the MAC.

Dayton’ other appointee, Dixie Hoard, is a former Northwest and Delta flight attendant from Thief River Falls. Hoard and Mohamed will participate in their first MAC meeting tomorrow.

Mohamed has been active in efforts to improve AirServ workers’ wages and working conditions by organizing a union, a campaign supported by Local 26 of the Service Employees International Union. SEIU Local 26 announced Mohamed’s appointment in a press release today.

“I am excited to bring the voices of the people that I speak to on a daily basis to the MAC,” Mohamed said via the press release. “In my current position as a cart driver, I speak with hundreds of elderly and disabled passengers each day. I hear about their time in MSP and am the first line of response to help.

“I am excited about this opportunity to serve and to be a leader in connecting new communities to the important work of the Metropolitan Airports Commission.”

In addition to working as a cart driver, Mohamed has served as a baggage runner, ticket verifier and in lavatory and water services. His range of experience, he said, will allow him to serve the residents of his district and be a voice for the workers on the front lines.

“I will work to make sure that workers at the airport are part of the conversations at the MAC, because when workers have fair pay, decent benefits and a reliable schedule, we are able to provide world-class service to passengers,” Mohamed said. “I will continue to stand together with my fellow co-workers as we fight for dignity and respect for all workers at MSP, and will always fight to make sure the needs and concerns of workers and passengers are part of all decisions made by the MAC.”

MSP Airport has been a hotbed of organizing activity in recent months. SEIU Local 26’s organizing campaign is operating in concert with a campaign to raise the airport’s minimum wage to $15 per hour. And more than 20,000 flight attendants at Delta, which uses MSP as a hub for its operations, are poised to vote soon on whether to join the International Association of Machinists.

Local 26 President Javier Morillo said Mohamed will be a strong advocate for workers in his new role.

“We applaud Governor Dayton for insisting that a worker be represented on the MAC, and appointing a great candidate like Ibrahim Mohamed,” Morillo said. “I am excited to see Ibrahim continue the work he has always done fighting to make the MSP airport the best airport it can possibly be for both employees and passengers.”

How do your wages stack up? New analysis pinpoints cost of living in Minnesota

cost_of_livingAs debate swirled at the State Capitol in recent years over whether – and how much – to raise Minnesota’s minimum wage, lawmakers found themselves confronted with a question their own experts could not easily answer.

How much do workers need to earn to meet their most basic costs?

To zero in on an answer, the Legislature charged the Minnesota Department of Employment and Economic Development with conducting a study.

DEED’s Labor Market Information Office devised a plan to break down the cost of living not only statewide, but by county and region, taking into account geographic disparities in seven cost categories: transportation, housing, child care, health care, food, taxes and other necessities.

Now the results are in, and DEED’s new Cost of Living tool, available on the department’s website, sheds light on the challenges and difficult decisions Minnesota’s working families face.

The results, said John Clay, a research analysis specialist for DEED who devised the study’s methodology, don’t “represent a middle-class income. It also does not represent a poverty-level income. Rather, it’s a basic income that meets health and safety needs.”

The annual cost of meeting those needs in the seven-county Metro Area is $25,932 for a single worker without children, according to the new tool. Given a 40-hour workweek and year-round employment, a worker would require wages of $12.47 per hour to reach that annual income level.

In other words, even with the scheduled increases in the state’s minimum wage – up to $9.50 per hour next year for most workers – the Metro Area’s lowest-paid jobs are leaving workers without the resources necessary to meet their basic costs.

Those costs go up, of course, with family size. A single parent of one child in the Metro Area requires full-time wages of $24.97. For a two-parent family raising one child, the living-wage breakdown looks like this:

  • $21.16 with one full-time worker in the family.
  • $15.69 with two full-time workers.
  • $17.92 with one full-time worker and one part-time worker.

Not surprisingly, DEED’s analysis found the state’s highest cost of living in the Metro Area.

But there’s good news for Twin Cities workers: the median hourly wage paid by metro employers in the second quarter of 2013 (the most recent wage data available) was $19.92, almost $2 higher than the statewide median wage. Basically, that means half of Metro Area workers earn more than $19.92 per hour, and the other half earn less.

“At first look, it’s a good sign for the Twin Cities labor market that the median wage is above the cost of living for most families,” Clay said. “But is that enough that most people should be meeting their basic needs? That’s an open question.”

It’s an open question, in part, because for many workers – particularly in low-wage sectors heavy on part-time jobs – wages are just one factor determining their income. Increasingly, these workers report difficulty getting the hours necessary to piece together an income that will meet their basic needs.

Bree Halverson is statewide director of Working America, an organization of workers without the benefit of a union on their jobs.

Bree Halverson is statewide director of Working America.

Bree Halverson, statewide director of Working America, an organization of workers without the benefit of a union at their jobs, said with minimum wage in the rear-view mirror, a “fair scheduling bill” is the next challenge for lawmakers looking to ensure the state’s economic recovery benefits all workers.

Working America members, Halverson said, report “getting called as few as two or three hours before their shift and told, ‘Don’t come in.’ Or it’s the opposite, and they’re called that day and asked, ‘Can you come in?’

“That leaves the worker to scramble to find child care at the last minute, or to try making up the hours they were counting on with another job.”

More than 250 employees of AirServ who work at Minneapolis-St. Paul International Airport signed a petition earlier this month asking their employer for more reliable scheduling. Halverson said “flex” and “standby” scheduling have long been practices used by employers in the hospitality industry, but are on the rise now in the retail and service sectors.

Halverson recounted one member’s story of being required to work later than usual at his job, which pays $8.50 per hour. By the time he finished work, the bus that took him there had stopped running, and he faced a $20 cab ride home.

“We need employers to start scheduling more people full time, for 40 hours per week,” Halverson said. “And part-time workers deserve a schedule that they can depend on.”

Labor federation looks to put union members on ‘Path to Power’

Lynn Barton, a child care provider and AFSCME member from Alexandria, joined in a workshop at the Path to Power training.

Lynn Barton, a child care provider and AFSCME member from Alexandria, joined in a workshop at the Path to Power training.

Lynn Barten stood up in a conference room Sunday morning in St. Paul and gave a stump speech for a campaign she isn’t running – not yet, anyway – before a roomful of people who couldn’t vote for her anyway.

Barten, an AFSCME member from Alexandria, was one of more than 70 people who enrolled in the Minnesota AFL-CIO’s Path to Power training, a two-day boot camp in the most basic skills necessary to run an effective campaign for public office – skills like messaging, fundraising, networking and, yes, writing a stump speech.

“There are all these things like messaging, how you present yourself, how you sell your campaign,” Barten said. “It’s campaign basics, but had I thought of it before? Probably not.

“If it weren’t for an event like this, I’d just be doing everything on Google, searching for how to write a stump speech.”

The best advocates

When union members like Barten win election to public office, they make the best advocates for working families. That’s the idea behind the new Path to Power initiative, introduced by the Minnesota AFL-CIO last year.

[Click here to check out details regarding the next Path to Power training, April 25-26 in Little Canada.]

In many ways, program coordinator Bill Emory said, Path to Power is a response to the proliferation of attacks on the middle class. Corporate-backed lobbying groups like ALEC have turned state capitols into battlegrounds for workers’ rights, and billionaires like Michael Bloomberg are using personal fortunes to push their agendas on an increasingly local level.

“We need more people at all levels of government who actually know what it’s like to balance a checkbook on a middle-class paycheck, know what kind of impact unions have on building a stronger, more fair economy and know how important it is that our public dollars are spent well,” Emory said.

The Minnesota AFL-CIO, the state’s largest labor federation, hopes Path to Power will create a “pipeline” of leaders capable of standing up for the labor movement and its values. The state federation teamed with the national AFL-CIO to develop curriculum for the training.

“We want to make sure that union members have the best preparation possible before they run for office,” Emory said.

Path to Power trainings took union members through the steps of running for public office.

Path to Power trainings took union members through the steps of running for public office.

Everyone welcome

Participation in the training was not restricted to union members. Ira Jourdain, a losing candidate for school board in Minneapolis last year, enrolled in the training to increase his familiarity with unions, how they operate and how their issues relate to campaigns like his.

“It was an eye-opening experience,” he said. “I had so many people, even after the election, who were part of a union tell me to run again. Being here today, I’m learning more about making connections with unions and other groups sooner in the campaign.”

Building confidence

Emory said there appears to be a strong appetite for Path to Power candidate trainings among union members and the progressive community. Registration for the first training more than doubled expectations, and already 15 people have signed up for a second training April 25-26.

“I hope that participants will come away feeling confident that they can build a team of committed volunteers, communicate a strong message that includes a focus on economic justice, raise money, talk to voters and do all those things they’ll need to do to run for office successfully,” Emory said.

Barten, who is eyeing a run for Minnesota House of Representatives, said the training moved her one step closer to taking the plunge.

“I was so excited to be here today,” Barten said. “Putting these tools in my toolbox gives me a little more confidence that I really can do this. Maybe it’s not that tough.”

Five running for St. Paul City Council gain labor endorsement

FederationLogoCOLOR-WEBFive candidates for St. Paul City Council, including one in the contested Ward 2 race, will take labor endorsements from the East Metro’s largest union federation into precinct caucuses Feb. 3.

Delegates to the St. Paul Regional Labor Federation, AFL-CIO, voted Jan. 14 to endorse Darren Tobolt in Ward 2, where Council Member Dave Thune is not seeking another term.

Tobolt lives in the West 7th neighborhood, works as an aide to Ramsey County Commissioner Victoria Reinhardt and is a former chair of the St. Paul DFL.

“I grew up in a union household, and I look forward to being a champion for working families on the council,” Tobolt said. “I will not only respect public workers and the service they provide, but I will make sure that all of my work supports our community’s values of respect for workers and their families.”

The St. Paul RLF also endorsed four incumbents seeking re-election in 2015: Dai Thao in Ward 1, Chris Tolbert in Ward 3, Russ Stark in Ward 4 and Dan Bostrom in Ward 6.

“St. Paul’s union workers are fortunate to be represented by council members who share our values, welcome our feedback and treat us as partners in building a livable, just and prosperous community,” St. Paul RLF President Bobby Kasper said. “These council members have earned labor endorsement, and they can count on our support.”

DFL precinct caucuses are open to anyone 16 or older, although only those who will be 18 or older by the Nov. 3 election can vote or run to be a delegate. Click here to learn how and where to caucus Feb. 3.

Kasper said the RLF’s endorsement process would continue in advance of elections for St. Paul City Council and St. Paul Board of Education this year.

Candidates seeking labor endorsement screen before the St. Paul Labor Assembly, a grassroots organization open to rank-and-file members of unions affiliated with the St. Paul RLF who live or work in Ramsey County. The assembly then makes recommendations for endorsement to the St. Paul RLF.

The St. Paul Labor Assembly will screen St. Paul school board candidates Feb. 2, and the RLF may consider recommendations for endorsement at its February or March delegate meetings. For more information, call 651-222-3787.

More than 100 affiliate unions make up the St. Paul RLF, representing more than 50,000 union members who live or work in Ramsey, Washington, Dakota and Chisago counties.

Minnesota state, local taxes fairer than most, report finds

web.ITEP-1

(Institute on Taxation and Economic Policy graphic)

Minnesota’s tax structure is among the fairest in the country, according to the results of an annual analysis of state and local tax systems released today by the nonpartisan Institute on Taxation and Economic Policy.

The report, “Who Pays,” looks at how states generate tax revenue – and how much it costs taxpayers at different income levels.

In Minnesota the wealthiest 1 percent of earners, with more than $498,000 in annual household income, pay 7.5 percent of their income, on average, in state and local taxes. That’s a lower rate than any other income bracket in the ITEP’s report, including:

  • The rest of the top 20 percent of Minnesota earners, with household incomes between $102,000 and $498,000. On average, they pay about 8.5 percent of their income in state and local taxes.
  • The lowest 20 percent, with less than $24,000 in annual income, who pay an average tax rate of 8.8 percent.
  • The middle 60 percent, with earnings between $24,000 and $102,000, who pay an average tax rate of about 9.7 percent.

Although middle- and low-income people in Minnesota pay more of their income in state and local taxes than the state’s highest earners, the same is true everywhere in the U.S. The good news for Minnesota is the gap between what middle- and low-income people pay and what wealthy people pay is smaller than the gap in 44 other states.

In some states, the report found, the poorest 20 percent of taxpayers pay more than double the effective tax rate paid by the richest 1 percent of taxpayers. Washington is the country’s most regressive state, taxing the poorest residents at 16.8 percent and the top 1 percent at just 2.4 percent.

Why does it matter if state and local taxes ding lower-income families more than upper-income ones? In addition to being a matter of basic fairness, regressive tax structures contribute to growing income inequality in the U.S., which has reached a level not seen since before the Great Depression.

“In recent years, multiple studies have revealed the growing chasm between the wealthy and everyone else,” ITEP Executive Director Matt Gardner said in a press release accompanying the report. “Upside down state tax systems didn’t cause the growing income divide, but they certainly exacerbate the problem.”

Why are state and local tax systems unfair across the board? According to the ITEP report, it’s mostly because these governments tend to rely more heavily on sales taxes to raise revenue than income taxes.

Minnesota’s tax structure is less regressive than most other states, according to “Who Pays,” in part because of its graduated tax structure, which assesses higher rates to higher income levels. Gov. Mark Dayton and DFL majorities in the Legislature raised taxes on the wealthiest Minnesotans to address a budget shortfall two years ago.

The report also praised Minnesota’s sales tax exclusion for groceries and its Working Family Credit, increased by Dayton and DFL majorities last year.

The state’s comparatively high sales tax rate – on tobacco, in particular – hits lower- and middle-income earners harder than the wealthy, the report found.

Download the complete report here.