OPINION: All Minnesotans will pay more with tax-increase agreement
Monday, May 27, 2013 10:04 AM
Minnesota House and Senate Democrats have approved the largest tax increase in decades, and State Rep. Greg Davids (R-Preston) said all hardworking taxpayers will feel the impact.
"Legislative Democrats told us they would only raise income taxes on the top 2 percent of Minnesotans," Davids said.
"Well, not only are they taxing success on the highest incomes, they are also raising taxes on people with the lowest incomes, and everyone in between."
In all, legislative Democrats raised taxes and fees by more than $2 billion in order to eliminate a $600 million deficit.
Along with the income tax increases, cigarette taxes are rising by $1.60 per pack and business-to-business sales taxes will now be instituted.
"Ultimately that tax will raise the price of business products and services, and customers will end up paying for them," Davids said.
The proposal would also take money that could be used for schools and roads and use it as a backup funding plan for the Minnesota Vikings stadium if e-pulltab revenues continue to under-whelm.
New business taxes and cigarette tax revenue would be used as the new stadium funding fallback mechanisms.
"In other words, legislative Democrats want smokers to bail out Vikings ownership," Davids said. "The cigarette tax is a regressive tax that hurts the poorest of the poor the most. In my opinion, this is a reverse Robin Hood. We're stealing from the poor and giving it to billionaires."
"These massive, unnecessary tax increases are going to be a disaster for Minnesota," Davids concluded.
In addition, Davids said legislative Democrats broke their promise to Minnesotans to have a plan to pay back the school shift. They also approved legislation that attempts to force the unionization of childcare providers - a move nearly all parents and most providers oppose because it will raise the cost of weekly daycare.