Dear Neighbor,
We are wrapping another week of work at the Capitol. Good news came this morning when Gov. Mark Dayton said he is pulling his much-criticized business-to-business sales tax off the table.
I do not support this proposed tax increase. It would be extremely damaging to businesses of all sizes, make Minnesota less competitive on the global market and result in higher costs for consumers. Minnesotans were engaged in the process, expressed their opposition and editorial boards throughout the state echoed their sentiments.
This is a start, but we still need to see how the legislative majorities react to the news. It also represents only one proposed tax increase in a raft of them being pushed by the governor and legislative majorities this session. We still have new taxes on everything from oil changes to haircuts to get off the table, along with tax increases on health insurance, alcohol, cigarettes and gasoline.
Here is more on some of those:
TRANSPORTATION TAX INCREASES
A transportation bill which would put $3 billion more funding toward roads and transit projects over the next four years recently was heard in a House committee. Tax increases and new fees would help pay for the additional spending. They include:
-
9.5 cents per gallon gasoline tax increase
-
$10 increase of tab fees, plus .125 percent of the base value of the vehicle
-
Expansion of the annual metropolitan wheelage tax to statewide; counties that opt into the wheelage tax may set the amount, rather than the tax being set by statute at $5
-
General sales tax extended to include auto repair and auto repair warranty purchases.
-
Increase in the current ¼ of 1 percent sales tax for transit in metro area to ¾ of 1 percent.
This bill would raise Minnesota’s gas tax to among the nation’s highest at a time our families and businesses can least afford the added costs. It would negatively impact low-income and middle-class individuals and families by implementing regressive taxes, while exempting state agencies and local governments from the impact of sales taxes. This proposal should be abandoned, just like the governor’s
HEALTH INSURANCE PLAN ADVANCES
The House passed a bill this week which would form a state-run health care insurance exchange. The intent is to tailor a plan to fit Minnesota’s needs as opposed to adopting the federal government’s one-size-fits-all Obamacare model.
It would cost us hundreds of millions of dollars to operate and include a 3.5-percent tax, while lacking the three things Minnesotans care about most: affordability, choice in care and data privacy.
The Democrats’ plan is a monument to government growth, inefficiency and waste. You know a plan is flawed when even Gov. Mark Dayton calls it “a big gamble,” as he did during a recent radio interview. I hope the governor remembers what he said and vetoes this legislation if/when it reaches his desk.
We did successfully add an amendment preventing abortions to be covered under the plan was adopted.
Our state is a national leader in health care and in health insurance. We have too much to lose in rushing to passage this new government program that seems destined to fail.
I will keep you up to speed as things develop in St. Paul. Until then, please continue providing me with your thoughts on the issues.
Sincerely,
Mark