To the editor,
Gov. Mark Dayton recently released more details into his tax plan, but it seems we still have more questions than answers.
We know the governor is proposing $3.7 billion in new taxes. The real challenge is determining just how the tax increases would impact middle-class families, job creators and local governments. The list of taxed goods and services remains vague. I believe all Minnesotans deserve to know how the governor’s budget would affect them.
I am receiving a great deal of feedback from local business people who are concerned about the damage Dayton’s business-to-business taxes – on things like legal fees and accounting charges – would bring. Many shops in our district cannot absorb any more taxes.
We are still seeking confirmation from the governor on what would be tax-eligible under his plan. Details are lacking and it feels like some people want to take the federal approach and pass this legislation to find out what is in it. Minnesota is better than that and this lack of transparency is very disturbing.
State officials estimate the governor’s proposed business-to-business tax would cost our businesses $1.5 billion in 2015 alone. We could expect those charges to be passed onto consumers in a snowball effect. Newspapers throughout the state have recognized this and are urging the governor to back off from his plan to raise business taxes.
Between the governor’s business taxes, proposed minimum-wage hikes, increased gas prices and flawed Health Insurance Exchange legislation, our businesses are being hit from all sides. A bill has been introduced to quadruple the wheelage tax in the metro area to $20 per vehicle and expand it statewide if Greater Minnesota counties opt to participate. I oppose the increase, but favor local control and am offering an amendment to limit a wheelage tax to the original $5 per vehicle.
Minnesota is on the path toward economic success and even Dayton acknowledges that the policies implemented over the last two years have worked. There have been 72,000 jobs created since 2010 and unemployment is down to 5.5 percent. We’ve had positive economic forecasts for the past year, a span in which revenue has exceeded expectations by around $3 billion. This is not the time to dramatically increase government spending and force every hardworking Minnesotan to pay more in taxes.
A local issue I continue working to resolve pertains to protecting property owners where issues pertaining to power lines have arisen. I have authored legislation that would provide for timely resolutions to land acquisitions. Another measure I authored would eliminate the naming of a preferred route so citizens play a larger role in the process and proposals are evaluated on the same playing field.
Sincerely,
Rep. Jeff Howe