To the Editor:
Over the last two years, the state has gotten back on the right track. We reduced a historic deficit and created an economic environment with more certainty, which, the data shows, resulted in more business investments and more jobs for Minnesotans.
This week Governor Dayton proposed the biggest tax increase in Minnesota history ($3.7 billion), and I fear it is veering us off the path to success.
First, I am concerned that the $2.1 billion sales tax expansion on everyday items (like car repairs, over-the-counter medication, and haircuts) will have the greatest negative effect on poor and middle class families. Put these on top of recent social security tax increases, and the result is a domino effect: diminished take-home pay leads to a tighter family budget and less purchasing, which, at a macro level, leads to a decline in the economy.
Second, the world is a competitive place, and higher taxes will isolate Minnesota. I want our businesses’ first choice for expansion to be in Minnesota, not North Dakota or other states with a more favorable business climate.
We cannot tax and spend our way to sustainable growth and prosperity; tax increases don’t close budget deficits and are not a substitute for economic growth. We need to spend what’s in our checkbooks and keep our fiscal house in order.
Gov. Dayton’s plan will grow government spending faster than the economy is growing. This is simply unsustainable.
Fortunately, we have a few months to work through this and I am committed to working with Gov. Dayton to craft a bill that works in the best interests of Minnesota.
Sincerely,
Dan Fabian
State Representative, District 1A