To the editor,
The tax bill that recently passed the House includes a tax increase on tobacco products and its purpose is to have people quit smoking. The purpose of the alcohol tax is supposed to cause people to drink less. Won't we then receive less revenue due to a decrease in sales?
The question begs itself: If taxes steer behavior and we increase taxes on conduct that is identified as an issue, what affect would the proposed income-tax hike do? How about the plan to eliminate deductions for charitable contributions?
Let’s hope we never find out, but the tax bill House Democrats recently passed on the House floor includes those provisions and would raise a wide range of taxes that would cost us all. In all, Democrat proposals raise around $3 billion in new taxes and fees this session. It would be the highest state tax increase in at least 30 years, accounting for inflation. The cost of the tax plan is estimated to be approximately $550 per person Minnesota.
These are regressive taxes that would hit virtually all Minnesotans. The hard-working citizens of our state will all pay more regardless of their income level.
State revenue continues to surge and our economy is bouncing back from the Great Recession. These new tax increases to support more spending on government programs threaten to eliminate jobs in Minnesota and further burden citizens who do continue to work.
We can balance our budget without raising taxes by establishing a responsible budget that falls within the bounds of our expected 3-percent growth in revenue. The problem is we are currently considering a plan that is based on an unstable revenue source and that spends money twice as fast as the state receives it. The tax bill must go to conference committee so there is still hope that changes to the bill can be made.
Sincerely,
Rep. Jeff Howe