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To the Editor –
A recent commentary in your newspaper questioned the wisdom behind tax proposals under consideration at the legislature. I wanted to take this opportunity to clear up a few details about the plan I support.
Several weeks ago, House Democrats proposed over $535 million in property tax relief, paid for by increasing income taxes on Minnesotans making more than $400,000. I believe that this plan is the best way to achieve fairness in our tax code.
Our current tax system is very regressive. A study by the Department of Revenue showed that while middle class families pay more than 12% of their income in state and local taxes, the wealthy pay less than 9%.
This disparity is no doubt fueled by the explosive growth in property taxes over the past several years. Since Governor Pawlenty took office in 2002, Minnesota property taxes have soared over $1.7 billion. The forecast for the next year isn't much better. Under existing law, property taxes will increase another $600 million – including increases approaching 15% here in Northern Minnesota. Even Governor Pawlenty's plan would result in a $400 million dollar property tax increase.
In fact, only the Democrats have proposed a plan that provides permanent and significant property tax relief for homeowners all across Minnesota.
The commentary in your newspaper argued that DFL supported tax increases would result in jobs leaving the state. But the author, a prominent member of the Minnesota Chamber of Commerce, ignored the fact that the Governor's budget includes hundreds of millions of dollars in increased property taxes on family homes. The difference between our proposals is that while the Governor's tax increases would disproportionably fall on middle and working class families – who are already paying more than their fair share – the DFL plan would work towards tax fairness by asking for a little more from those who can clearly afford to pay. As a son of a miner from the Western Mesabi, I know that tax fairness and good public services were values that all Minnesotans were instilled with.
Regards,
Rep. Tom Anzelc