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Annie Baxter
ST. PAUL, Minn.

Survey shows Minn. businesses more upbeat about economy, but not state's business climate

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A new survey of Minnesota employers shows that confidence about the economy is at its highest level since 2007.

The survey was co-sponsored by the Minnesota Chamber of Commerce and the public affairs firm Himle Rapp & Co.

Todd Rapp conducted the poll, which says 40 percent of respondents believe the economy is getting better. A year ago, 31 percent thought that.

"The numbers have really bounced back nicely, Rapp said. "I think that the recovery is beginning to be seen in a lot of areas of the economy."

But when the survey asked about Minnesota's business climate specifically, Rapp said confidence hit its lowest level in the survey's 10-year history.

He said the creation of a fourth income tax tier for wealthy Minnesotans appears to be playing a role.

"A little bit over half (55 percent) of business owners and managers said that they believed the new fourth tier income tax would impact their hiring decisions in some way," Rapp said.

The survey was conducted in July and August and included 355 business owners and managers at establishments employing at least five people.