Whether you’re rich or poor, young or old, the House DFL’s tax plan will raise everyone’s taxes, with the exception of Baxter Healthcare Corp. Here’s the House DFL tax plan:
Minnesota House Democrats are looking to fetch $2.5 billion by raising taxes on people with high incomes, those who smoke and those who drink alcohol. A tax package released Monday boosts those taxes to balance the budget, cut property taxes and increase school aid.
Including a temporary surcharge on top earners, Minnesota would carry the nation’s third highest tax rate.
In other words, the House DFL’s plan would raise everyone’s taxes. Gov. Dayton and the DFL frequently fight, at least verbally, for a more progressive tax system. In reality, the DFL fights for raising taxes, whether they’re progressive or regressive.
Gov. Dayton and the DFL frequently complain that “the rich aren’t paying their fair share.” If they truly believe that, why did the House DFL make cigarette and liquor tax increases a central part of their tax bill? House Speaker Paul Thissen says alcohol and cigarette tax allows the state to recoup the health effects, etc. caused by alcohol and tobacco.
What Thissen isn’t talking about is the verifiable fact that raising those taxes a) loses money for the state’s general fund, b) hurts small businesses like convenience stores and c) creates an underground economy.
QUESTION TO SPEAKER THISSEN: Why pass a tax increase that hurts small businesses and will create a revenue shortfall?
Then there’s the DFL’s plan to raise income taxes on “the rich who aren’t paying their fair share.” The top rate, including the DFL’s surcharge, will be 12.49%. Those companies just got hit with a barrage of federal tax increases, including the employer mandate tax increase and the tax increase on health insurance policies.
QUESTIONS FOR SPEAKER THISSEN: Do you think these companies will just continue to let you tax away their profits? Why does the DFL insist on tax increases, knowing that the DFL’s tax increase will lead to companies leaving Minnesota?
St. Cloud Area Chamber of Commerce President Teresa Bohnen says she’s recently talked with four local companies who say they may have to transfer their investments to other states if the Governor’s plan goes through.
Speaker Thissen can’t resist raising taxes even though he knows the DFL’s tax increases will hurt Minnesota’s economy. That’s because ideology is more important to the DFL than creating a flourishing economy.
The DFL’s policy of raising taxes on everyone will undermine Minnesota’s recovering economy. The DFL’s plan to raise tax rates to unprecedented and unjustifiable levels is, at minimum, counterproductive. At most, it’s foolish. Unfortunately, most of the DFL’s tax policies will become law. The good news is that these tax increases will inspire people to vote the DFL out of office in 2014.