Rep. Lohmer Responds to Governor Dayton’s Budget Proposal
Dear neighbor,
Last Tuesday, the Governor released his budget proposal to the legislature for the 2014-2015 fiscal year. The size and scope of the budget is quite alarming to me. This is a 7.6% increase in spending and an 11.9% increase in taxes from the current biennium to the next. The $3.7 billion in tax increases is the largest tax increase ever proposed by a Minnesota governor.
The tax increases that the Governor wants hit the middle class the hardest. The $2.1 billion of new sales taxes proposed on goods and consumer services include clothing over $100, health club membership, over-the-counter drugs, haircuts, legal and accounting services, digital downloads, online sales, and auto repairs. In this subzero Minnesota weather, we know that winter coats are a necessity and we shouldn’t be taxing them!
I’m also concerned by how Governor Dayton’s budget will affect our business climate. The proposed income tax hikes hurt small businesses registered as S-Corps or LLCs who file through their individual tax returns. 92 percent of Minnesota businesses – our job creators – file through individual tax returns. To make matters worse for businesses in our state, the Governor wants to tax business-to-business transactions. This includes legal services, accounting services, architecture, and advertising.
With Wisconsin just a few miles away from our district, I do not want to see businesses move across the river. I also want to see Wisconsin residents continue to buy merchandise in Minnesota. Imposing a tax on clothing would send a message our neighbors across the state border that Minnesota doesn’t want their business. If you are a business owner living in my district, I’d like to hear from you about how state policies have impeded your growth and what the state can do to help your business thrive.
THIS WEEK AT THE CAPITOL
Tuesday, January 22, 2013, marked the 40-year anniversary of the historic decision from the U.S. Supreme Court, Roe v. Wade, which gave women the “right to abortion.” Since that day, 55 million have lost their lives. Many Minnesotans braved the subzero temperature and stood on the Capitol steps to defend innocent human life. I was proud to have spoken on the House floor to commemorate this day and recognize the over 2,000 people who came to St. Paul and to ask for prayer for all who have been negatively affected by this decision. I was proud to speak with many of my constituents who showed up on Tuesday for the annual March for Life. Thank you to everyone who was able to make it!
I have been quite busy meeting with constituents, local public officials, and various other folks who have an interest in upcoming legislation. I am always interested in your feedback. Please feel free to contact me by e-mail at Rep.Kathy.Lohmer@House.MN or contact my office at 651-296-4244. You can also send mail to my office address: 239 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.
Sincerely,
Kathy