Friends and Neighbors,
I hope you are enjoying your summer. If you sustained property damage from recent storms, I encourage you to visit the MN Department of Commerce’s resource center here.
Celebrating Independence Day
I would like to wish you and your family a Happy Fourth of July. Whether you are traveling or staying in town, I hope you will take time to appreciate the freedoms and liberties we all enjoy as Americans. Prior Lake’s fireworks display will launch on Thursday night just after 10 p.m. from Watzl's Beach on Lower Prior Lake, sponsored by the Prior Lake Association.
New Laws Take Effect July 1
Today (July 1), many laws passed by the 2013 legislature will take effect across Minnesota, including changes to taxes, education and energy law. These will impact many families and businesses:
Taxes
According to a tax incidence analysis released by the Minnesota Department of Revenue, Democrats’ 2013 Omnibus Tax bill forces every hardworking taxpayer, in every income bracket to pay more.
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The largest percentage increase in the Minnesota state and local tax burden as a percent of income occurs at the first population decile, i.e. lowest income households (1.56% increase for income of $10,937 and under, compared to 0.37% average for all households)
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This analysis also confirms that business tax increases ultimately hit consumers. Over 60% of the corporate tax increases get shifted to Minnesota consumers or workers. 90% of the net business sales tax increases get shifted to Minnesota consumers or workers.
Details:
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Mom & Pop Shop Tax, New 4th Tier: $1.12 billion
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Minnesota’s income tax rate will be the second highest in the nation for comparative income and the fourth highest percentage in the nation
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Large Employer Tax: $424 million
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Cigarette Tax: $408 million – from a $1.23 per pack tax to a $2.83 per pack tax
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Sales and Gift Tax: $137 million including internet purchases/downloads (iTunes, e-books, etc.), equipment repairs, IT services, DirectTV and Dish Network, increases for rental cars
Education
The GRAD standards we are used to seeing in our public schools will be eliminated and replaced by subject matter tests in reading, writing and math. The new tests will not require a minimum score to pass, but high school students will still take college preparatory tests like the ACT. Additional funding will be sent to some school districts to implement all-day Kindergarten that currently don’t offer it, but new overhead bureaucracy will be put in place to further mandate how teachers run their own classrooms.
Energy
A new mandate on utility companies to use solar panels in some of their production will go into effect; this requirement could cause higher energy bills for homeowners and businesses in our area. Utilities are required to use solar to create 1.5% of all their power by 2020 and are asked to reach 10% by 2030. As you may know, solar is currently one of the most expensive and unreliable sources of power we use and requires more time to become effective.
Public Safety
Additional funding will be available for public safety and our busy judicial system, as well as an expansion of the Safe at Home program which protects survivors of domestic violence and sexual assault.
Childcare Unionization
Personal Care Attendants (PCAs) and home childcare providers are now authorized to form a union if union organizers collect enough signatures statewide. A union selected by some could impose mandatory monthly dues on all PCAs and childcare providers in Minnesota that receive low-income subsidies for those they care for. This may be delayed, however, because of two pending lawsuits that have been filed by childcare providers.
Pay Increase for State Officials
A pay increase for the state’s top officials in agencies will go into effect. Agency heads can now earn up to 133% of what the governor earns (which is also scheduled to go up) and these increases are set on auto-pilot to increase annually based on inflation.
I did not support these changes and I am happy to discuss them further with you.
Respectfully,
Tony Albright