Dear Neighbor,
House Democrats passed a bill this week that would raise taxes on hard-working Minnesotans by $2.6 billion. Hundreds of millions more in fees they propose bring the tab to around $3 billion.
Estimates show this would cost approximately $550 for every man, woman and child in Minnesota.
The vast majority of the dozen or so bills that will comprise the state budget for the next two years include spending hikes. Much of their proposed spending is wasteful, with the Democrats spending more on government programs and bureaucracy instead of focusing on delivering results for our top priorities.
Take the omnibus bill pertaining to Health and Human Services, which Democrats passed this week. It cuts $26 million next biennium from the senior living baseline funding, despite that extra $3 billion in taxpayer dollars they are looking to spend. It is concerning the Democrats want around $3 billion in new taxes and fees, yet fail to support some of our most vulnerable citizens. Where are their priorities?
Last fall, Democrats said they wanted to make top earners pay their “fair share,” but the omnibus tax bill they passed would impact all of us, regardless of income level. A new KSTP poll shows only 9 percent favor the Democrats’ all-tax approach to eliminating our shortfall that is $627 and shrinking.
Here is a rundown of some of their notable tax hikes in the tax bill:
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Cigarette tax: Increase from 48 cents to $2.83 (113% increase)
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Alcohol tax (203% increase): distilled spirits (119%), 3.2% beer (965%) and other beer (503%). NOTE: Summit Brewing said its annual state tax bill would jump from $550,000 to $2.3 million under House Democrats’ tax proposal.
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Income-tax increase: The House Democrat plan would make Minnesota the state with the second-highest income tax rate.
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Elimination the charitable contribution deduction for itemized deductors and replaces it with a non-refundable credit for 8 percent of the amount over $400 donated
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Internet purchases would be taxes
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Elimination of the incentive to purchase long-term care insurance at a time when the state demographer is warning us of an aging population
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Sports memorabilia tax: Would add a sales tax of 10 percent to items related to professional sports in order to pay for the Vikings Stadium
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Rental car tax: Increase from 6.2% to 9.2%
We have a $627 million shortfall that is increasing revenue is projected to eliminate on its own without a single tax increase. That makes the $3 billion in proposed taxes and fees clearly about Democrats wanting to spend money faster than the state receives it. Hard-working taxpayers already pay enough.
We can only hope this monstrosity of a tax bill in the House is stripped down during conference committee meetings. The problem is, the Senate and Gov. Dayton also propose raising taxes by billions of dollars to spend more, so you can see where this is likely headed. Click here for a Pioneer Press graphic that compares the three proposals.
I will continue advocating for a better approach with a more efficient, effective and responsible government, not one that wastes more taxpayer money.
Sincerely,
Tom