Greetings from the Capitol-
This has been a busy week in the legislature. Here are some of the items that are new this week.
Budget
Governor Dayton proposed his two-year budget plan on Tuesday for 2014-2015 and it includes numerous changes to Minnesota’s tax code that I believe will increase taxes on the middle class as well as our job providers. Dayton is asking for a new income tax bracket on individuals with incomes above $150,000 a year or $250,000 per couple, raising the rate to 9.85% which would be the fourth highest in the nation. The plan also includes a $500 homeowner property tax rebate.
In addition, he would impose a quarter cent sales tax in the metro for transit. This tax increase would be on top of the additional sales tax on many services and clothing items that cost more than one hundred dollars. While he is proposing to lower the rate, the fact is that there would be an additional $2.1 billion dollars raised from the sales taxes that we all pay. This burden falls more heavily on low and middle-class taxpayers.
Despite all the talk of taxing "millionaires and billionaires," Dayton’s new income tax is 25% higher than the current rate and will impact thousands of Minnesota families and small businesses that file individually. He even proposes adding sales tax to the cost of preparing your income taxes.
Some other pieces of the budget plan include:
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Increased spending:
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A new sales tax on:
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Aspirin, cold medicine, and any other over-the-counter drugs
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Auto repairs
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Hair cuts
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Legal and accounting services
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Clothing valued over $100 (like a winter coat or work boots)
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Business-to-business sales
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Digital downloads like iTunes, Apps
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Amazon online purchases or others like Amazon
The average income for families in Minnesota is not growing at nearly 8% every two years like state government would under the Dayton plan. In some estimates, Dayton’s growth of government would be twice as fast as the growth of Minnesota’s entire economy itself. I believe the cumulative impact of the governor's tax increases will drive our job creators to relocate in neighboring states, like Wisconsin and North Dakota, which have lower business tax burdens as well as more business friendly regulatory climates.
I look forward to a thoughtful and productive discussion about how we can protect the middle class from further tax increases while providing good services to the people of our state.
Safeguarding Private Data
On Wednesday, I held a press conference with several colleagues to announce a bipartisan bill that addresses recent data privacy violations committed by various state and local agencies. You may have heard about recent violations of the state driver’s license database by an employee of the DNR that impacted thousands and thousands of Minnesota residents, including several from Lakeville.
Data Practices Legislation Press Conference – 1/23/13
You can click here to read more about the bill, which would raise penalties for employees that improperly use personal data and would require state agencies to publish on their websites information about violations as they occur. I will continue to work towards more secure and transparent data practices to protect each individual's privacy.
Fun Fact – Minnesota Lottery
Did you know that in fiscal year 2012, retailers in our legislative district (58A) sold $2,206,679 in lottery products? This brought in $182,104 in commissions and incentives for the businesses that sold these games and tickets and resulted in an estimated $134,584 to the Environment and Natural Resources Trust Fund, $289,207 to the General Fund, and $51,857 each to the Game and Fish Fund and Natural Resources Fund.
Stay Warm,
Mary Liz Holberg
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Please feel free to contact me with any thoughts or concerns you may have. I can be reached at 651-296-6926 or by e-mail at rep.maryliz.holberg@house.mn.