Taxes
NEW: information about the Governor’s budget recommendations for taxes.
We invite you to contribute your ideas for the state’s tax structure. This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.
This chart illustrates the state’s property tax aids and credits. Although most tax policies relate to raising state revenue, these tax aids and credits spend state resources by passing aid onto local governments (county and city). The state aid allows local governments to reduce their reliance on property taxes in order to provide local services such as fire and police protection, thereby reducing the burden on property tax payers.
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NEW: Governor’s budget recommendations for taxes. (In legislative terms, we refer to spending by the Tax Committee as “Tax Aids and Credits.”)
Try to be as specific as possible in your comments so that your suggestions can be fully utilized by the Tax Committee. Thank you for adding your ideas to the discussion.
You may also share your ideas directly with your local Senator:
Follow this link to look up contact information for your Senator.
Follow this link to look up who represents you.
To learn more about the Senators who serve on the Tax Committee, follow this link.
Vadnais Hts., MN
January 15th, 2009 at 5:16 pm
With Minnesota’s infrastructure disintegrating, it’s time that the Minnesota legislature takes Governor Pawlenty at his word, that “all options are on the table” and raise the Minnesota income tax rate for wealthy individuals who pay a disproportionately lower percentage rate of local and state taxes (Minnesota Dept. of Revenue tax study). It’s time for the legislature to correct this disparity. It’s disingenuous, to say the least, for him to say that “all options are on the table”, when in fact he adheres to his “no new taxes” pledge.
Some conservative legislators have accused me of conducting ‘class warfare’; some even accuse me of being envious of the wealthy or, yes, even being a communist. It’s not about envy or class — it’s about fairness.
When the wealthiest of taxpayers are not paying their fair share for essential government services, the result is either a reduction in services or higher taxes and fees for everybody else.
The trickle-down theory of economics has worked, but not in the way it was ’sold’ to the American people by the GOP. Instead of the benefits of tax cuts ‘trickling down’ to the vast majority of Americans, the shifting of the tax burden has substantially reduced the tax obligation for the wealthy. Even worse is the resulting unsustainable debt being incurred by all forms of government due to revenue shortfalls that result from tax cuts.
Yes, these ‘musical chairs’ tax reduction schemes have merely shifted the federal tax burden from the federal government to state governments, which in turn have handed off many of their former obligations to local governments. The Governor’s “no new taxes” pledge still has resulted in increased taxes and/or ‘fees’ for those with more modest incomes.
In any case, if you want good government someone will have to pay for it. It’s just a question of ‘who?’.
Deer River
January 15th, 2009 at 8:16 pm
I think a tax cut for business is precisely the way to go. Government needs to get out of the way. If the government wants more revenue, allow business to invest in employing more people. That will create a larger tax base. The larger the tax burden, the less likely business will employ new people or they will move out of state or for that matter out of the country. Tax cuts actually do pay for themselves whereas increasing taxes decrease more money into the private sector resulting in an economic slowdown. This, in turn, means less into the government revenues. I agree with Gov. Pawlenty’s idea of cutting taxes, for business, for everybody!
Wayzata
January 15th, 2009 at 9:22 pm
The bottom quintile of income earners in MN get approximately $8 of government service for every dollar they pay (if they pay any at all). The top quintile gets roughly $.30 of government service for every dollar of tax that gets taken from them. Lets not talk about the fair share for the wealthy! They already get very little for what they pay in tax. Why should we punish the productive citizenry with a higher tax rate? Why should the top 10% of income earners pay over 60% of the tax burden??? Is this fair??? Absolutely not. If any tax is to levied on citizens (income tax was originally unconstitutional) it is to be levied EQUALLY to all. Otherwise the majority (in this case the “non-wealthy”) will simply vote to keep raising the rates on the wealthy and reap the benefits. At some point people (the ones still motivated to work and earn) will give up and start asking for handouts rather than working.
If we want good government it needs to SHRINK drastically. The government is already the largest employer in the state and that is a disaster. Government workers in general do not produce, they consume.
If the government (which is the problem, not the solution) were the appropriate size we wouldn’t be having this discussion. Lower taxes on everyone, especially the wealthy, so they will begin spending again. Lower taxes on business and for Pete’s Sake SHRINK the government!!!
Princeton
January 16th, 2009 at 9:34 am
We are losing our home. If the national bailout had been distributed as a tax cut for working families, we would have been able to keep our home.
It can still be done at the state level. If working families are allowed to keep more of their earnings, they will be paying it towards mortgages, credit cards, medical bills and discretionary spending. The businesses receiving this revenue will in turn be able to pay their employees and other obligations rather than laying people off. The state would be collecting payroll taxes AND sales taxes on the spending that the people will do. And this flow of money and commerce will be immediate! Plus, people will spend it where it does them the most good. (Not bonuses and for CEO’s who failed to run their companies ethically and responsibly.)
We have two newer businesses. One is a restaurant franchise. Are you going to raise taxes on two struggling businesses and take more employees off our payroll and put them on unemployment, as it is likely our doors will shut if we are faced with higher taxes and fewer customers who are afraid to spend.
sincerely,
Russ Hageman
Ramsey
January 16th, 2009 at 2:26 pm
Taxes are to high in the state to both induviduales as well as business Honeywell left because of our high corparate tax rates Delta decided to shift Northwest operations to Atlanta who should we force out next Best Buy or maybe Target or even 3M I dont think the legestlature uses common sense in anything they do I watch the 17 during the day and they typicly debate what the other party did when they were in charge bikkering gets us no where its time to use common sense and make some cuts in spending the government cannot create prossprity that is done by private companies and individuales stop government expansion freeze hiring and pay tax clothes and get out of the way of Minnesota’s citizens
Hamburg
January 16th, 2009 at 2:42 pm
Bottom line is Minnesota and the United States needs to take a hard look at the role of Government. Government is not to be all things to everybody. Government is to be limited in its scope for Free Market and Democracy to flourish. The simple answer to taxes is a Flat Tax.
The Flat Tax has many benefits.
1. Stable tax revenue
2. Promotes the entrepreneurial spirit
3. Reduces size of Government
4. No more tax return
By going to a flat tax the state would have a general idea of their revenues and plan the budget accordingly. Keeping the tax rate flat will encourage people to be more productive and earn more money. The other part of the flat tax would be to eliminate all tax credits that are currently in place. Without tax credits and a simple flat tax there will be no reason to file taxes as your flat tax would be collected at each pay period. The elimination of the tax return would reduce the number of IRS agents required to monitor, collect, and enforce the tax code. Both citizens and Corporations would have a flat tax. In addition to reduced IRS work force savings, the amount of paperwork generated results in a two fold benefit. The first being a Green policy everyone can get behind. Two the savings of dollars spent to produce the paperwork, file the paper work, process the paperwork, and store the paperwork.
The notion of a flat tax can be expanded to the United States too. Imagine only having to pay a state tax, where applicable, of 10% and a Federal rate of 5% while corporations would see a state rate of 15% and a Federal rate of 10%. Plus the Corporation would still match the payroll tax of their employees.
More money in our pockets, stimulation of the economy, reduction in Government spending, and a reduction in anxiety over filing taxes.
Sauk Centre
January 16th, 2009 at 5:50 pm
Raise the income tax on the rich.
Make the total tax system progressive.
Stop the reliance on property taxes.
End the reliance on fee increases.
Shakopee
January 17th, 2009 at 2:25 pm
January 17, 2009
Minnesota Senate
Subject: Suggestion for helping to reduce the state budget shortfall
Legislators;
We saw Governor Pawlenty on television, saying, “Please, please, please don’t raise taxes.” But, as we all know, without some sort of at least a small tax, the budget just can’t be balanced.
I was over to Eden Prairie on January 14th, buying printer cartridges. I had the price figured before buying, but when I got my slip, the amount was different. I happened to see a figure, .68 on the slip. Later, I called the store and was told that Hennepin County has a .68% sales tax, to pay for the new Twins stadium.
My suggestion to help balance the state budget is to make this .68% sales tax state-wide. This is fair. Everybody pays it. It is not like the gas tax, where it would go down when people drive less, or buy fewer cars.
Without this small tax, the burden will most likely be pushed on to the Counties, who will need to raise property taxes, which are high already. And, what many people don’t think of is that there usually are assessments added to the property tax, making it even worse.
From Elmer Otto
1057 Eastview Circle, Shakopee, MN 55379
Phone: (952) 496-2493
E-mail: OTOShak10@aol.com
Carver
January 17th, 2009 at 7:37 pm
Simple question: Why is the State allowed to pick and chose where my tax money is going to be spent? Instead of credits and subsidize; the state needs to end the collection of these funds and allow the residents of the communities to determine how their money will be spent. Lower everyone’s tax rate from a state level and allow the communities to collect the taxes as needed. This will allow the Market place to truly work; if Hennipen County wants to have a 6.9% sales tax; I will spend my money in Carver County at 6.5%.
The state should eliminate business taxes so that these companies can survey and thrive in this economic environment. Again, allow the communities to set these tax rates. Lower tax rates will allow these companies to hire more people and may actually draw new companies and industries to the state. All of the employee’s at these companies are individually taxed “twice”; this is because the company could be using this tax money for salaries, capital investments, or benefits that improve the employee’s business.
Minneapolis
January 17th, 2009 at 9:00 pm
The State Government can reduce the projected budget deficit by ONE BILLION dollars without cutting any services. All they have to do is REFORM the Property Tax to HOUSEHOLD INCOME rather than the assessor telling the local government how wealthy we are. If that were done, the HOMESTEAD CREDIT and property tax REFUND PROGRAM would not be needed anymore.
Also no RELIEF would be necessary to any property tax payer because everybody would be paying their fair share. Local governments would get their revenue stream as before, except the public would no longer have to put up with the assessor.
Wayzata
January 17th, 2009 at 10:58 pm
Chris Lund has the right idea. The Flat Tax would be a huge improvement over what we have today. Herbert Davis seems not to understand what taxing the rich does to the economy. When the rich stop spending (which they do when taxes go up) the people who rely on them lose their jobs. Under most circimstances, the poor don’t employ people. It is usually the rich. When taxes go up the rich will fire their lawn service, fire their housecleaners, go out to eat less and buy less. They won’t remodel etc. This hurts all those businesses.
I actually favor the Fair Tax system over the Flat Tax but would accept either as a major improvement over what we have now. This would essentially be a consumption tax that would replace income tax and sales tax. There would of course be rebates for food and a certain amount of clothing/essentials but you would pay for what you want and YOU would control your tax…NOT THE GOVERNMENT.
I guess Herbert thinks that if the top 10% of income earners are paying over 60% of the total tax revenue, they aren’t paying enough. The rich should pay more. Yah, that would be much more fair.
New Richland
January 18th, 2009 at 11:54 am
With regard to corporate taxes: The state should allow accelerated depreciation on large asset purchases like the federal government has since the 9-11 recovery package was enacted. That would end the horrible surprise state income tax bill–much greater than the federal income tax. Workers compensation costs are our biggest out-of-control budget item and the real drag on hiring.
Anoka
January 19th, 2009 at 10:23 am
The cost of running a business is becoming impossible to continue because of Government TAX mandates and regulations.
Businesses are taxed to death and the government believes they don’t pay enough. They pay state taxes. Federal taxes. Property taxes. Sales and Use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes,
Fees and taxes. Plus tax men must be hired to manage all these taxes Government mandates. You know what A Business man’s “stimulus” check was? Zero. Nada. Zilch.
The question I have is this… Who is stimulating the economy? A flourishing business? Or, the illegals and the single mothers sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.
Government cannot subsidize the unproductive and penalize the productive it is unsustainable, it is wrong and there will, one day, be no tax money to give away (Zero. Nada. Zilch). As of today the lowest 40% of the public pay NO Taxes. To live here one must put something into the pot…it is only fair.
What if Business’ deducted (Stole) 50% of your paycheck you’d quit and you wouldn’t work there. I mean, why should you? That’s nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree… which is why your country is in jeopardy. Government cannot Steal 50% plus of productive hard earned wage earners monies and give it away to the unproductive non workers! CUT, CUT, CUT, CUT, TAXES!
Lakeville
January 19th, 2009 at 2:50 pm
One fair tax solution that most Minnesota workers would appreciate is assessing sales tax against internet businesses. Right now, local businesses are unfairly discriminated against by sales tax laws. There is a simple solution to this inequity.
In 2008, NY State passed a law defining any organization generating over $10,000 in sales in one year as having a “presence” or “nexus” within the state under sales tax law. They believe that that single change alone would generate an additional $73 million in revenue. Minnesota should follow this lead.
In addition, any such change would directly benefit the state and local business by helping to level the playing field between internet business and local businesses that provide employment to Minnesotans. Most legislators agree that the most significant cause of the budget deficit is high unemployment in Minnesota.
Hamburg
January 19th, 2009 at 9:46 pm
Part two to the flat tax would be a statewide sales tax that is similar to our current one. Call it a consumption tax. I do agree that raising taxes on the rich will only hurt the state confers and potential job creation in Minnesota. Government is not the answer to all of needs. Time for change is here. Lets move to a tax platform that promotes growth and industry while eliminating Goverment waste. Flat and sales tax is the change we need. Lets be on the leading edge and drive America to a tax platform that is equitable and promotes liberty and the pursuit of happiness. Instead of one that punishes those with drive and desire to improve their position in life.
Eden Prairie
January 21st, 2009 at 2:59 pm
Raise taxes for the upper brackets (including my taxes). People who have more can afford to pay more in this time of crisis. Paying taxes supports our community and way of life.
Deer River
January 22nd, 2009 at 10:42 am
I believe in cutting taxes across the board. I will take the responsibility of properly investing the money and at the same time giving to various charities. If I don’t, then it is my fault alone and I will suffer the consequences. If someone wishes to pay more in taxes, then do so, but not at my expense. You take the responsibility and pay more on your own.
Stillwater
January 22nd, 2009 at 6:10 pm
I’ll try not to repeat what others have written, so I have one. Totally eliminate the refunds for political campaign contributions. It’s not just the amount of the refund, but the state pays people to generate these refunds, which includes benefits. That’s what gets expensive. People don’t give to campaigns just to get their money back. They give to get someone elected.
St. Paul
January 23rd, 2009 at 8:10 am
Businesses pay taxes, sure; maybe even “a lot.” However, business always pass their costs onto the consumer. So, in essence, business never have to pay taxes. We consumers do! So, you the consumer pay twice as much as any business owner. We consumers pay our own taxes, and the business’. So the discussion is not an “us and them” it’s about all of us and what we need to make our society run smoothly and safely…Stop saying I don’t want to pay taxes, when the reality is we all have to pay and we all should benefit equally. Then, we can start balancing the budget.
Shakopee
January 23rd, 2009 at 3:28 pm
January 23, 2009
Suggestion- helping reduce the state budget shortfall
I saw on the Senate website that you are looking for suggestions to help lessen the state budget shortfall. This is my suggestion:
In Hennepin County, instead of .65% sales tax, the County has a .68% sales tax, to pay for the new Twins stadium. My suggestion is to make this small increase statewide. It’s a fair tax, because everybody pays. It’s not like a gas tax or other tax where not everyone pays.
If the state budget burden is pushed onto the Counties, they will have to raise the property taxes. What people may not realize is that many times there are assessments with these taxes, so an increase would be painful.
Thank you,
Elmer Otto
1057 Eastview Circle, Shakopee, MN 55379
Phone: (952) 496-2493
E-mail: OTOShak10@aol.com
Minneapolis
January 24th, 2009 at 3:47 am
I am very distraught over the economy in general. The middle class seems to be taking the biggest hit. Everyone but middle class whose paying taxes is enjoying a benfit from the stimulus package to be.
I worry about losing my job which might happen. In these times, sacrifices have to be made more by our government officials who make the laws.
With most of you being in session not even half a year, you should have to give up all your perks including health insurance for you and your spouses. Your pay should be decreased with little time spent in office each session.
You must lead by example! I bet most of your day jobs pay the bills otherwise. Secondly, I am compassionate and attempt to think realistically. One way to cut costs includes those persons in prison who have been convicted of murder of any degree or sexual assault and rape.
Rather than give them three meals a day, the luxury of a free education and medical & dental care. Eliminate all that and let them truly work for it or allow the voters to vote on the death penalty.
In a perfect society, persons would be more kind to their fellow man, woman, child or the innocence of animals. Not let a jury of strangers decide the fate but the victim’s family members decide. Its only fair!
If we eliminate the luxuries of the prison system in Mn, we won’t be attracting potential criminals. We as a state have to put our foot down and mean it. I am not from here and moved here 10 years ago.
I moved here because of the political system and charter schools. Yet both were deceiving. I am grateful to have moved here. I have busted my ass to make a living with better wages.(I acknowledge having a college degree hasn’t meant anything to my employers during this time.) The opportunities are available for some, not everybody. That is a sad reality.
Consider my idea! No one wants to be perceived as soft on the fragile human condition. But we don’t want to be perceived as pushovers either. I confess to have voted for Gore, Wellstone, Kerry, Klobuchar and Franken.
Enough is enough! Some people have lost the respect for others in this society. I am concerned in the sense of public safety and the perception the State of MN gives refelects. Let’s get tough and let the hardcore criminals truly earn their keep!!!
Thanks
Hamburg
January 24th, 2009 at 9:20 am
Taxing the Rich or the upper brackets is not the answer to longterm prosperity. To really energize the Economy is for the citizen to have more money in the pocket. Government is not the answer. Case in point, Barney Frank just admitted he intervened in the bailout money for a black owned bank in Massachusetts, his home state, because the bank had participated in the Freddie Mac and Fannie Mae program. The same programs that Barney Frank and Chris Dodd drove into the ground. Government is not the answer to solving the problem. A flat tax and a statewide sales tax will give Minnesota a leg up as people with industry will see our great state as a place business can thrive thus bringing new jobs and ultimately increasing the tax revenue to the Government.
To really assist the citizens of Minnesota that have fallen on tough times or cannot make it, give time and money to local charities not the Government.
Minneapolis
January 25th, 2009 at 3:14 am
Economics 101:
People invest for a reward. Any government interference that increases the cost to invest- regulation, energy price, fees, and taxes- reduces or eliminates that reward. Those things may grow government but discourages growth of the private sector that pays ALL the bills.
Reducing the tax burden on higher income earners who (surprise!) happen to run businesses gives incentive not only grow business but also State revenue. You see that unlike increasing the government workforce, private sector empolyees use No taxpayer money and still pay their own tax.
Your legislators know this has been demonstrated over and over. Why would public servants think that being able to pick the winners and losers in spite of lower revenues is better than to incentivize a prosperous workforce essential to increase tax collection?
I guess they call that politics!
Maple Grove
January 25th, 2009 at 12:28 pm
The farmers and regular folks know that unless you have a stake in paying taxes, you don’t care where the money comes from, because it won’t be your money. Yet as of 2006 26% of filers in Minnesota have a zero tax rate or negative tax rate. It is time that everyone pay, if not their fair share, at least a 2% minimum rate regardless of economic status. We have some families who pay no taxes, yet received an unearned income tax credit, in effect “free money”. When everyone pulls a little in this economy, we get somewhere. When some do all the pulling and some do nothing -we get nowhere. Our charitable works have lept from the churches, where they belong, to Government, where they are not a constitutionally chartered purpose. Thank you.
North Mankato
January 26th, 2009 at 11:06 am
It’s obvious that Minnesota needs to find some new revenue if we want to maintain any semblance of the level of services we have enjoyed for generations. Let me suggest one source. As recently as a few years ago Minnesotans with incomes of more than $105,000 paid less in state and local taxes as a percentage of their income than those earning less than that amount. That is clearly regressive taxation. An increase in state taxes on those earning more than $105,000 to assure that we pay at least the same percentage of our income in state and local taxes as do our neighbors earning less than that amount makes good sense in these times. It will address the current unfairness in our state and local tax system. It will also provide funds for state government to make the sorts of investments in people that can help build a better future for Minnesota.
Red Lake Falls
January 26th, 2009 at 11:07 am
I think its time to expand the sales tax to include clothing.We have a great number of people shopping at the mall of america from other states and countries purchasing clothes.We shop often in Grand Forks and pay ND sales tax on clothes,but the ND residents come across the river to buy clothes at Cabelas with no sales tax.
Minneapolis
January 26th, 2009 at 12:26 pm
Minnesota has among the most Fortune 500 companies per capita of any state in the union, and we have an amazing amount of wealth concentrated at the top. Yet, people of color (esp. African American and Latino immigrant communities) are as poor, as unlikely to achieve, and as ill-served by health care and educational institutions as the poorest states in the union. We need to dramatically increase taxes on corporations and individuals at the top of this wealth pyramid, and invest in several priorities, including health coverage for all and more teachers to reduce classroom sizes. Over the next two decades, these investments would make a Minnesota about which we would be proud to boast.
Bloomington
January 28th, 2009 at 8:25 am
Minnesota needs to restore the progressive system it once enjoyed, and which helped our state become “The Minnesota Miracle” once recognized by the rest of the country. You see, that is why I moved here over 30 years ago. I saw Minnesota’s INVESTMENTS in her people and her infrastructure that were forward-looking for our people and our economy.
We have had to endure over 30 years of trickle-down, destructive economics that have NEVER worked to build a society ANYWHERE in the history of the world. And now we have a governor who insists on making us adhere to these losing ideas.
It’s so frustrating to watch the state try to “re-invent the wheel” when our own history has shown us what works! Go back to those progressive values which proclaim that “each according to his means” (meaning a FAIR distribution of taxes to those who benefit the most from the infrastructure and the wealth of our society — i.e., those at the TOP) should contribute to the common good.
Investments in education, health care and infrastructure should be among our top priorities.
The middle class is the driving force in the economy — the “demand.” When you impoverish them, you break down the machinery of the economy. Fewer taxes have never worked over the long run to build up and sustain an economy. Higher, sustained incomes, better jobs and progressive taxes keep the wheels of the economy well greased. Anything less than that only feeds (temporarily) greed and self-infliction of mortal wounds.
We are still seeing the old arguments from the founding of this country play out: the “royalists” (Republicans) vs. the Democrats. We fought a war of independence to escape the “crown” and rule by the oligarchy, only to have to keep fighting that ideological war. As Obama said, WE WON! (So let’s run our country and our state that way!)
Duluth
January 28th, 2009 at 9:32 am
only middle-class and working families make the sacrifices, while well-connected special interests keep getting a free ride.
Edina
January 28th, 2009 at 9:40 am
Use Pawlenty’s proposal to cut business taxes (I’ve heard they are a small piece of the pie already, and the most volatile section) as a bargaining chip. Give it to him IF he lets you expand the sales tax to clothing (provide a tax credit to remove its regressive nature). Raise the gas tax. Raise drivers’ license renewal fees - I couldn’t believe it only cost me $24 to renew my license for four more years - $6 a year is way too reasonble - again a tax credit or income waiver could halt its regressive nature. And, raise the income tax on those who make more than $250,000 a year.
Crookston
January 28th, 2009 at 9:51 am
How did we wind up with a shortfall? In large part by cutting taxes too much and being too optimistic about the future. To try to get the state budget in balance without some tax increases seems to me irresponsible. Will we close jails? Stop plowing roads? The low hanging fruit is education but in a tough economy demand for education rises and education is how we position ourselves for a better economic future.
As for lowering taxes on the most wealthy of our citizens in hopes that will provide better jobs to the least wealthy, that’s been tried and found not to work. I would support raising my own taxes but not those of the bottom quartile.
St. Cloud
January 28th, 2009 at 9:53 am
Any “corporate” tax cuts will HAVE to be tied to job creation.
MN income tax structure must return to being progressive and FAIR. There should no longer be a lower tax rate for the higher tax brackets. Can you restructure without increasing the overall tax burden? This could be a counter argument to the same old “no new taxes” if you sell it to the public as a return to the old tax system.56303
Northfield
January 28th, 2009 at 9:58 am
Governor Pawlenty has rightly thanked out military personnel for their many sacrifices on behalf of the United States. Some even made the ultimate sacrifice, as we have again been informed recently. However, he insists to refuse to ask the rest of us to make any monetary sacrifices to meet the needs of our state. We need to provide quality education, help for our needy and those without health insurance. The many of us who are able should be asked to pitch in and help, and a tax increase is the necessary, and good, way to do it. Those who have recently lost their jobs would not be affected by this increase since these taxes are on income, and they might even help us provide some extra help to the unemployed.
maple grove
January 28th, 2009 at 11:19 am
Econ 102….How absurd to say that wealthy people use no tax services….hospitals, police, fire, education, roads, etc. We all benefit from taxes, no matter how much we individually pay. And if you have some evidence that Corporations will hire more people to sit idly in plants that produce products the middle class can’t afford to buy, let us all know. Demand needs to be stimulated immediately and private enterprise can’t do that as the first thing the top dog’s will do is to award themselves some more free stock options and then wait till the economy hits the bottom before they reinvest in their companies. While the employers are laying off thousands, show me where they are also taking significant pay cuts and doing anything to stimulate our economy.
Minneapolis
January 28th, 2009 at 12:04 pm
I am troubled by the number of respondents who seem to be motivated by a narrow, me-first attitude toward taxes, and hostility toward those who are most vulnerable. Taxes are the cost of our participation in society, and purchase the myriad of services we receive.
I believe that the only taxes that should be lowered are for those in the lowest quintile of income. Taxes for those in the top quintile should be raised (they are in the best position to pay them, and are currently not even paying a share equal to lower quintiles, let alone paying a progressively greater share). As another commentator points out, taxes on business are passed on to the customer anyway–they won’t suffer significantly if their taxes are raised. As a member of the upper middle class, I would be willing to pay more taxes. Taxes on Internet sales would be reasonable. We need a greatly increased gas tax, not only as a revenue source but also as a means of drastically reducing carbon dioxide production–or global warming will be totally catastrophic for the whole world (including MN). Unless a mechanism is instituted for balancing out the regressive nature of sales taxes, I don’t believe that taxes on food and clothing should be introduced–except for luxury items (designer clothes, for example).
As a health care provider, I am very angry about Gov. Pawlenty’s proposal to raid the Health Care Provider tax to balance the budget. All that money should be going to help pay medical care for those least able to pay (and the MinnesotaCare program should be expanded, not reduced–in fact, eliminate the medical insurance industry entirely, and go to single payer–we don’t have to wait for the feds to act. That would have the effect of providing more money both to individuals and employers).
Mankato
January 28th, 2009 at 2:15 pm
I just have a question at this time. What happened to the gambling money that was supposed to go towards education and state parks, etc.? It seems to me that we’ve had more problems since gambling was legalized than before it was legalized. Better education means higher incomes and a larger tax base. Better informed people usually have fewer health problems, which means our Medical Assistant programs will have to “give out” more money. Basically we need to EDUCATE our population. Not just the young either. Adults of any age will benefit from better education.
Lino Lakes
January 28th, 2009 at 3:37 pm
I propose helping to balance the state budget by a tax increase in an amount equal to or less than the amount of the tax breaks given to individuals in Pres. Obama’s stimulus plan.
This would in effect systemmatically re-direct Minnesotans’ tax break portion of the stimulus plan towards helping all Minnesotans weather this crisis.
St.Louis Park
January 28th, 2009 at 4:38 pm
1.Consider broadening the sales tax scope to include items or services not currently covered with an eye particularly towards any big ticket luxury items.Reinstitute property tax bracket at higher percent on homes over a certain valve.($1million?)
2.Avoid k-12 accounting shifts and aid cuts as school quality has already been hurt with prior year cuts.
3.Remember that sales and income taxes are more ‘efficient’ taxes to collect than property taxes when cutting local aides to cities and counties who rely on property taxes.
Arden Hills
January 28th, 2009 at 4:56 pm
It is time to abandon the “no new taxes” pledge. People with incomes over $250,000 for a married couple should be paying higher taxes, they can afford it and often demand better public services such as roads, police protection and school systems. Right now they pay the same as people with much lower incomes (or very close to the same). The idea of giving tax breaks to businesses so that they will come to Minnesota is absurd. We have been doing this lowering of business taxes for years and the economy in Minnesota has gotten worse. The jobless rate is now as high or higher than the national average which was not the case when business taxes were higher.
Minnesota used to be a model state. That was back when we were a higher tax state. Now we are fast on the road to mediocrity and the lower taxes have been a big part of the problem.
Taxes do not stimulate the economy (for every dollar of tax breaks only about 50 cents or less goes into the economy, whereas increasing services such as food stamps gives 1.60 or so back for every dollar spent).
There may be a few programs that are over budgeted, and those should be looked at, but it is time for those with more to bite the bullet and contribute their fair share to the welfare of the state.
Stillwater
January 28th, 2009 at 9:19 pm
Senators-
I would like to know how long we will allow MInnesota’s casinos to have a monopoly on gaming that precludes the state from collecting any revenue off one of the largest commercial enterprises in the state ($1.5 billion a year). I understand we have a well-intentioned compact with MInnesota tribes that will protect their businesses in perpetuity but it doesn’t rule out competition. The state could sure use to collect tax revenue off the millions of gaming dollars going to casinos.
Let’s redirect some of those gaming dollars to racetrack casinos where the state can tax the receipts? The tracks are up and running and could bring on casino games this year - 2009. And, they are already regulated! (Eleven other states already have racinos that generated over 2.2 billion in 2007 for their states!)
Casino operators value their monopoly –I have seen, in public records, the level of their contributions to the House and Senate caucuses, but common sense suggests that leaders of our state look at the tremendous source of revenue that racetrack casinos could provide in the form of tax revenue.
I also have retired racehorses at home for pleasure and I know the broad impact of the racing industry which includes hundreds of small businesses. Please give strong consideration to the Racino legislation and the $200 million plus that the two tracks could generate in new tax revenue for our state. Thank you!
Minneapolis
January 28th, 2009 at 10:05 pm
Please raise income taxes, particularly on upper-middle class income earners (of which I am one). Keep property taxes from skyrocketing any more than they already have. Increase, don’t decrease Local Government Aid. Our cities are suffering from cuts to LGA. Don’t give big tax breaks to businesses, while taking more from lower and middle income earners.
Thank you for fighting the good fight and not giving in to Governor Pawlenty’s special interest budget.
maplewood
January 29th, 2009 at 10:35 am
Add tolls at the borders Wi residents are using the road alot by working in MN .It is cheaper to live in Wi and work in MN.They should pay to use the raod.Besides this will be a user fee to pay for roads.
UM and Capitol area have alot of parking lots/ramps.Taxpayers will benefit LRT is planned ,so the staff & studnets can use the LRT/buses .Reduce their transportation budget eliminating shuttles.
New Brighton
January 29th, 2009 at 10:42 am
Sales tax on clothes .
Reduce the number of Legislators They should have a wage freeze also.
All GOVT employees should require to turn off cumputers and lights,.Walk by the many bldgs and the lights are on 24hrs.BAn electronic such as radio .As a state employee some have raodio playing all day.Eg is the office in the former Donaldson bldg ST PAUL.
End free parking for state employees ,most state offices are in St Paul.Many parking lots were on former bldgs that the state bought and tear down for parking.They should make use of the discount buspasses.
Waconia
January 29th, 2009 at 11:31 am
I feel there are a number of areas Minnesota govenment needs to evaluate regarding taxes.
1)Reduce corporate and small business taxes. We continue to lose businesses and jobs to states with better corporate tax structures. In November 2008, Minnesota’s unemployement rate was at 6.8 vs. South Dakota at 3.4%, per CNN Money Report. We must be competitive, otherwise we run the risk of economic decline in our state and more importantly the decline in quality of life for future generations. We have one of the highest corporate tax rates in the US at 9.5% and our neighboring states are doing just fine at 0%-South Dakota,6.5%-North Dakota, 7.9%-Wisconsin.
2) I believe we need to pay income taxes, however that rate should remain fair no matter how much you earn. The state needs to shift to more of an emphasis on user based taxes. Here is a good example of a recent tax law change that put an unfair burden on all Minnesota families, the recent change to automobile license tab fees. The value of the vehicle has no relation to the amount that you use the roads and related services. Increase the gas tax, which is a user tax and those who drive and use our roads both residents, visitors, trucking companies, etc. pay for what they use and help pay for repairs and improvements. We need to rescind the change from 2008 and increase our gas tax instead.
3) Finally the best solution to our tax and budget problem is to reduce spending. Minnesota government needs to get back to the basics. We are providing more services than I feel the govenment was originally set up to do and quite frankly is equipped to handle. We are not being fair to people to start programs we can’t follow through on and wasting tax dollars with start up costs, only to cancel the program due to budget cuts a few years later. It is time we solve our social issues locally in our communities and as fellow Minnesotans. People helping their neighbor when in need helps raise awareness, makes our communities stronger and our state a better place to live. Let our social and community issues be solved through philantrophy and community involvement.
We are in challenging times, however I see this as an opportunity for us to become better people and a better state for all.
Anoka
January 29th, 2009 at 12:24 pm
Without bussiness there would be NO jobs.
Ireland learned a lesson with high corporate taxes…They were dying on the vine with high taxes until they lowered them..then their economy took off??!!?
The thoughts of some on this site are myopic and sadly uninformed.
Revenues are drying up because productive tax payers are suffering; plus tax revenues are being doled out like candy to an ever growing unproductive group that has an instiable appetite. The more they recieve the more they want and our silly government gives it to them.
Someone quoted this Socialist nonsense…
Quote: “We have had to endure trickle-down, destructive economics that have NEVER worked to build a society ANYWHERE in the history of the world.
It’s so frustrating to watch the state try to “re-invent the wheel” when our own history has shown us what works! Go back to those progressive values which proclaim that “each according to his means” (meaning a FAIR distribution of taxes to those who benefit the most from the infrastructure and the wealth of our society — i.e., those at the TOP) should contribute to the common good.”
The OPPOSITE is the truth… “each according to his means” is the motto of every FAILED communist (socialist) society in the world…History has proven that none of these societies survived or excelled…they all have failed miserably…Russia etc. People do not work for others who will not work for themselves. Our early colonies tried this stuff and found it did not work!
If we adhere to this nonsense we will follow history as a failed society…It is time to wean the unproductive off of the dole or ?????????????
Henderson
January 29th, 2009 at 12:36 pm
Stop cutting the LGA. There are hundreds of communities in Minnesota that use this for law enforcement, fire, and ems. Maybe when the Gov. is out and about on our roadways and needing help, he would like to wait an extra 20 minutes to get one of these public safety agencies, due to local govts. being forced to cut back, due to the LGA cuts.
Savage
January 29th, 2009 at 7:45 pm
Extend the sales tax to clothing. This could eliminate the need for an income tax.
Buckman
January 29th, 2009 at 10:02 pm
I think we have two major problems in this state. First there are too many people who don’t have a stake in the services provided by the state, they want more more more but someone else should pay for it. I don’t care what your income level is you should be paying taxes. One of the other posters mentioned it and he was right on. There is no free lunch, if you live here you should help with the budget here.
The second and biggest problem is that there is a spending problem at the state level. Every surplus becomes part of the next budget which has the effect of increasing our budget much quicker than the necessary inflation adjustment.
there is the third problem of the state employees being treated better than the people who are paying their salaries and more importantly their retirements. When the state retirees are getting better benefits than the people who are providing the benefits something has to be changed. Stop spending now.
Maple Grove
January 30th, 2009 at 12:46 pm
I have read the suggestions of my fellow citizens and have come to see their point that a flat income tax rate on every resident (no exceptions) would give everyone a stake and say in how those dollars are spent. I have read several comments with tired versions of “leave mine, take theirs” and calls to relive the “Minnesota Miracle”. Not productive, and things are already better than they ever were in the 1970’s. Right now more than 25% of filers in Minnesota pay ZERO or negative income tax. I don’t care if you make 10k or 100k, if you all pay 5%, it’s fair, and we will all complain equally how wasteful our State government is with our money. This is fulfilling our obligation as citizens to pay our fair share and will end this tendency of one group to want to rob penalize the other. No exemptions. Fair and equal. Badda-bing, badda-boom.
Falcon Heights
January 30th, 2009 at 2:16 pm
Raise the taxes on our most privileged wage earners and stop sticking it to our most vulnerable citizens. Tax any clothing item over $150 and other luxury items. Create a more progressive tax system.
Some have compared the wealth disparity in this country to the 1920s. In the 1920s, the top income tax rate was around 24% and the inheritance tax rate was 20%. How did FDR and Truman manage to create a vital middle class that was sustained for 30 years, preside over a downward distribution of income and wealth, and create an era of unprecedented prosperity? They raised taxes on the top wage earners. Amazingly, in FDR’s first term the top tax rate was 63%, 79% in his second term and 91% by the mid-1950s. The average federal tax on corporate profits rose from 14% in 1929 to 45% in 1955.
While there is no political will for those high rates, either within our state or federal governments, certainly our fellow citizens in the top 10% of wage earners in the state should be paying at least the same percentage as those of us earning %75,000 or less. (Incidentally, I picked $75,000 because 96.5% of women earn $75,000 or less in this country and I am a woman.)
Mankato
January 31st, 2009 at 7:15 pm
I would change the state income tax structure to mirror the federal tax structure and aggressively (progressively) increase the tax percentage on those that are wealthy. I would suggest something like this…
0% = 0 to $8,025
2% = $8,025 to $32,550
4% = $32,550 to $78,850
6% = $78,850 to $164,550
10% = $164,550 to $357,700
12% = $357,700 and above
instead of this…
5.35% = 0 to $26,830
7.05% = $26,830 to $107,820
7.85% = $107,820 and above
By decreasing the tax rate on those that make less than $164,550 you would give the working class consumers that our economy relies on more money to spend. Those well off and making more than $164,550 can afford to pay more and if they are small retail business owners they will have more customers in the end and make more money anyway.
I would also investigate the GAO report (http://www.gao.gov/products/GAO-09-157) that shows 83 of the top 100 U.S. corporations using off shore tax havens. This includes Minnesota corporations 3M (9 tax havens), Best Buy (13 tax havens), General Mills (33 tax havens), and Target (8 tax havens). These corporations tax our public infrastructure the most all while making large profits. They should pay their fair share.
SAINT PAUL
February 1st, 2009 at 8:24 am
Eliminate all corporate taxes, income and payroll. Publicly fund health care expenses. Corporations do not pay taxes, they only collect them. Make Minnesota the lowest cost state for a corporation to do business. This should shut up the tax whiners.
Eliminate all personal deductions and tax credits in excess of $100,000.
Tax at an exponentially progressive rate the remaining individual income. Set the rate at a level that will fund all budgeted programs, including universal health care.
Montrose
February 1st, 2009 at 11:19 am
I am one very frustrated TAXPAYER. As my income becomes stagnant, All I hear from the politicians is we have to do something (as they increase their pay and benefits) in these hard times. Well hear are a few things you can do. 1. Stop taxing unemployment benefits. The employee and employer has paid that tax. 2. Start taxing welfare benefits. Once the recipiants find out it’s not free maybe they’ll go to work. 3. Reinstate the write off of revolving credit card debt on personal income tax. Once the Government decided to collect taxes via credit card it only compounded the crdit problems of the working poor. If the taxpayers are having trouble meeting the current taxes being imposed, what makes you think they can afford paying credit card companies with default rates at thirty percent.
Big Lake
February 1st, 2009 at 1:54 pm
I suggest returning the rates of income taxes back to what they were in 1965. That was a prosperous year for Minnesota and the burden of paying taxes was spread out well between the rich and poor.
I have benefited from the Minnesota government. I received an excellent education. I visit parks. I walk on sidewalks and drive on streets. My food is delivered to the grocery store on publicly financed streets. Public sewers protect me from disease. The public fire department protects my house from the fires. Publicly financed police keep order in my neighborhood. I am grateful for all of these services and more. These services are not free.
I am proud to pay my fair share of taxes.
Shakopee
February 1st, 2009 at 2:41 pm
February 1, 2009
Suggestion- helping reduce the state budget shortfall
I saw on the Senate website that you are looking for suggestions to help lessen the state budget shortfall. This is my suggestion:
NO ONE THING IS GOING TO SOLVE THE STATE BUDGET CRISIS. IT IS TOO GREAT. My suggestion can be added to many other ways. And, how did we get in this mess, in the first place? With the No New Taxes pledge.
In Hennepin County, instead of .65% sales tax, the County has a .68% sales tax, to pay for the new Twins stadium. My suggestion is to make this small increase statewide. It’s a fair tax, because everybody pays. It’s not like a gas tax or other tax where not everyone pays. Other states are in trouble, too. Don’t be afraid of a high sales tax in comparison. And, we could tax clothing, as well.
If the state budget burden is pushed onto the Counties, they will have to raise the property taxes. What people may not realize is that many times there are assessments with these taxes, so an increase would be painful.
There is a great picture in the Minneapolis Tribune of a very large highway project that could be done with the Obama stimulus package. If we had been putting money for it as-we-go, we would have the state share to build this.
Thank you,
Elmer Otto
1057 Eastview Circle, Shakopee, MN 55379
Phone: (952) 496-2493
E-mail: OTOShak10@aol.com
Laporte
February 2nd, 2009 at 3:51 pm
Put me down as someone who believes that any honest effort to balance the budget will mean that tax revenue will need to be increased. I disagree with Gov Pawlenty’s “no new taxes” approach. I don’t believe that we can continue to cut government services or sell state lands and maintain our Minnesota quality of life.
I would be generally opposed to any attempt to cut back on education, health care, the environment and any number of other areas. Minnesota is generally considered a well educated, progressive state, one that attracts businesses and retirees to the state. I want it to stay that way.
I believe that we need to take a serious look at tax increases starting with a higher tax on gasoline and fossil fuels. In addition to raising revenue a carbon tax has the advantage of addressing global warming and discouraging dependence upon foreign oil with its national security implications. We all witnessed how $4 gasoline encouraged conservation and the use of alternative energy forms.
Another area that needs a good look is the taxes the wealthy pay. It seems to me that the laws have long favored people in the higher income brackets and the wealthy. Given all the tax breaks written into the law many of them pay a lessor tax rate than you and I. And the trend has not been good in recent years.
Overall it can’t be said that there is absolutely no room to reduce the cost of government, e.g., think about eliminating the township level of government, but I suspect that with all the cutting that has already occurred that we are through the fat and getting into the muscle. Lets give thought to raising some taxes.
Hastings
February 3rd, 2009 at 5:09 pm
Is there anyway of taxing or surcharging gambling profits from “soverign nation” casinos?
It seems that MN is practically the lone ranger of non-taxation of these profits. The biggest employer in MN should be able to cut employment by 3%. It would not have to be across the board…some departments more, some less. It would eliminate 20,000 jobs and at least $600M in overhead. Also, stop employees from accumulating paid vacation…use it over a specified period of time or lose it…3M et.al
are doing that. Tighten State belts..don’t whine
St. Paul
February 4th, 2009 at 6:04 pm
When I look at my pay stubs, the MN state income tax is a drop in the bucket in terms of the total taxes withheld. A 2% tax increase for me would amount to the price of a cup of coffee every two weeks. Go ahead. Keep all options on the table, including a modest income tax increase.
I work with low-income seniors through the MSHO program. They are not lazy. Many are refugees, many of my American-born clients are functionally illiterate, many are chemically dependent or mentally ill. Many have dysfunctional families who exploit them financially. These are not just folks who can “pull themselves up by their bootstraps” as many of the previous comments have implied. They live on a minimum amount of social security, usually around $700/mo plus $14 in food stamps. Medicaid is the big ticket item from the state — their “welfare” — that keeps these folks going. These are among the highest cost users of health care — low health literacy, high comorbidities. Keeping them as healthy as they can be can only help the state’s bottom line in the long run.
Those of you who think welfare recipients have it made, I suggest you try living on $700/mo.
Again, I urge you to keep the option of a tax increase on the table. A small increase across the board seems fair, hurts all equally, and will generate needed revenue. A healthy, well educated population is what the state needs for the future, not cuts in education and health care.
Mankato
February 5th, 2009 at 8:45 pm
I agree with those who say that those earning over $250,000 should NOT be paying less as a percentage of their income than someone earning $80,000. That needs to change in order to see real fairness. As a small business owner I do not believe that a small increase in the tax rate for those in upper brackets has any effect on hiring. If your business is doing well you will hire. If business is bad you won’t. Tax rates do not enter that equation under most circumstances. Remember business reaps huge benefits from the tax code which already encourages business growth and wealth creation. I am opposed to further regressive fee and sales tax increases. This is a hidden burden on the lower class.
Frazee
February 6th, 2009 at 2:37 pm
ELIMINATE THE COSTLY UNNECESSARY TOWNSHIP LEVEL OF GOVERNMENT MN. example: Wolf Lake Twp., Becker County has 11 miles of road to maintain. In 2007 town board voted to give up Board of Equalization duties and voting. There is no basis for township LGA and assessment.
We should also recognize the need to merger counties for principles of economy. This also hold for merging school districts. If economies of size are valid is it not logical to join other states in eliminating townships and merging entities.
Hopkins
February 6th, 2009 at 5:20 pm
When Govenor Pawlenty proposes lowering Corporate Tax Rates to attract business to Minnesota, he needs to remember that attracting business to Minnesota is not the same as bringing jobs to Minnesota. Jobs for many Minnesota Businesses are not located in Minnesota - they are in India, Nebraska, China, Mexico, New Mexico and many other lower income states or countries. Therefore I don’t think lowering Corporate Tax Rates will result in bringing more jobs to Minnesota and I don’t see the point.
Wayzata
February 6th, 2009 at 10:31 pm
Government must cut its spending. Our biennial budget just 2 years ago was billions lower than it is now and we were not bad off. The brains in St. Paul managed to spend our surplus and now we have a deficit…go figure.
Eliminate the LGA. When cities such as Apple Valley are building water parks and at the same time saying they have to cut funding to the Police they are abusing their taxpayers. Half of the cities in MN don’t take LGA…the rest need to elect city leaders who know how to budget.
I agree with the entry that stated our public officials and state workers need a pay cut and decreased benefits…they should feel the pain of the recession too.
As for all the people who think its fine to tax the people who have worked hard to become “rich” at a higher percentage than others…go find your socialistic/communistic country to live in. Just don’t turn mine into one!
mpls
February 7th, 2009 at 11:26 am
I write only to urge Legislators to think long and hard before taxing clothing. It is a truely regressive tax especially hard on poor families.
But my biggest worry is what will happen to the Mall Of America and the tourism dollars collected.
I can think of no good reason people will continue to flock to MOA when large, nondescript, concrete structures are everywhere! Why fly all the way to the Twin CIties when you can buy all the same stuff anywhere else?? I used to work in the restaurant industry and met many people from across the country and the world who came here even in down economic times for a getaway…why not..you can shop and still afford to go out to dinner! Let MOA keep it’s one truely unique feature (tax free clothing) and maybe we will continue to capture diminishing tourism dollars!
Greenbush
February 7th, 2009 at 5:08 pm
tax DNR for all the land they own. they get all that lottery money. they can pay land taxes with that money they stold from minesotan in that bill they tricked voters in suporting 25% of lotery money for 25 years was nuts and they just waste the money.
st paul
February 11th, 2009 at 6:51 am
Let’s start with “Special Sessions” if our elected officials are unable to make decsions during the normal session, then they should “pay a fee” to cover the costs of a special sessions.
Too many elected officials and the wealthy are not paying taxes (as seen by the Obama appointees) let’s make sure they pay every year.
New Brighton
February 13th, 2009 at 1:45 pm
Minnesota is throwing away too much money in the form of Refundable Tax credits to non residents. If you do not live in the state of MN you should not be eligible for our Working Family Credit. There are many people out there who are manipulating the system and work in MN for two weeks every year so they can file a MN Individual Income Tax return to receive the WFC. These tax credits should be intended to supplement the income of MN residents ONLY. The same thing should go for the Property Tax Refund. The “renters rebate” could be eliminated all together or at least rewritten so that it isn’t being handed out to again, NON RESIDENTS. I wish there was even one politician who was willing to commit the political career suicide in order for MN to get back on its feet.
Dassel
February 13th, 2009 at 2:13 pm
In agreement with Michael Seeger and June Kozar (and many others with whom I have had this discussion), I am requesting that our legislators seriously consider taxing clothing. Everyone in MN is responsible for maintaining our state and the wonderful things MN has to offer its residents and potential residents. A clothing tax is a fair way for everyone to pitch in to help balance the budget. For those who buy second hand clothing, there should be no tax. For those of us who are buying new clothes, there should be a tax. My guess is that consumers wouldn’t even notice this tax. If someone is buying so much that they notice the tax, they probably can afford to pay it.
St. Paul
February 14th, 2009 at 6:55 pm
Property tax has become a contentious issue. But it hasn’t always been that way. In the beginning it was a tax on land only. The concept of the original property tax was that land could produce income. It was a de facto income tax. However, when the politicians started taxing homes, the original concept was compromised and the controversy started because our homes do not produce income.
Anybody who opposes a reform to our property tax that has evolved beyond recognition from the original concept, are misled by the culture that property taxes are the most stable tax. Yes, property taxes are stable. But that stability is not due to the fact that property values are used as the tax base. The stability is achieved by the change in LEVY the local governments can make. If another tax base was used, the local governments could achieve the same stability by a LEVY on that tax base just as they do now.
Our property values and personal income have followed the same curve. One can verify that with the Minnesota Department of Revenue. Therefore, there is no reason why our property tax should not be reformed based on household income. That would restore the integrity and end the controversy.
There is no reason for the local governments to fear that their revenue stream would be decreased. It would be the opposite because the STATE would save over billion dollars every budget cycle and therefore could increase the Local Government Aid by that much. The savings would be from all the unnecessary aid the State pays in property tax refunds.
The skeptics may oppose a property tax reform. But before anybody closes his/her mind to a reform, they must consider the overwhelming evidence that our property tax is UNFAIR. Why else would we need “boards of adjustment” and the STATE spending over a billion dollars in every budget to mitigate the aggrieved. And, don’t forget that every one is threatened of loosing their home if financial disaster strikes us and we don’t have income to pay the property tax.
If our property tax was reformed based on household income, we would be paying our fair share to start with and no state aid would be needed for anybody. It would be restored to its original integrity and at the same time we would have eliminated the threat of loosing our homes.
St. Michael
February 14th, 2009 at 10:32 pm
If sales tax is attached to clothing purchases, I would like to see an exemption for individual articles of clothing below a certain amount, so that lower-middle class families with growing children may avoid the tax. I am not sure at which point a sales tax on clothing would kick in. Perhaps $25. Or, just as some foods are not taxed (staples) and candies and some other foods are, perhaps certain types of clothing could be taxed, but others exempted. At any rate, children outgrow their clothes quite frequently, and I feel some allowance must be made for families of modest means.
Alexandria
February 15th, 2009 at 12:43 pm
The current budget woes can only be solved with the creation of good jobs. Good paying jobs in the private sector will solve most of the problems we are currently wrestling with. Will increasing taxes create even one more job? No. If higher taxes were the solution, states like New York, Massachusetts and New Jersey would serve as shining examples of social progress. Instead these states are prime examples of bloated bureaucracy, failing schools, fleeing corporations and crumbling infrastructure.
We must limit the scope of government at every level or risk crushing the average citizen under an increasingly unsustainable level of taxation. Citizens must recognize that government does a good job collecting taxes for bridge building and a poor job at just about everything else. Evaluating government performance with normal accounting principles clearly shows that most government programs are bankrupt.
We need to build a business environment that rewards the creation of real jobs (not government jobs) in Minnesota paying solid middle class wages. The Minnesota miracle occurred in an age before globalization. Higher taxes will simply lead to more jobs moving to lower tax locations.
More spending is not the answer.
Saint Cloud
February 19th, 2009 at 11:49 am
Get rid of all Tax Credits. These “Wealth Distribution” schemes are killing the people who are still working in this state.
I own some property in Meeker County and my real estate taxes have risen 63.8% from 2004 to 2008 with another 20.4% increase scheduled for taxes payable in 2009. All of this without adding any improvements to the property. Of course since this is not my homestead it am not eligible for the Homestead Credit.
Get rid of Corporate taxes. These taxes drive business out of Minnesota and are just passed on to consumers anyway.
Forget about taxing the rich. If they should leave the state we would surely be doomed. Everyone should pay the same rate, which I believe is called a flat tax.
Cut expenditures. This is going to hurt somebody but that is the only way it can be done.
Lake City
February 20th, 2009 at 8:21 am
It seems that people are always looking for ways to avoid taxes yet are clammering for more government services and assistance. Our nation is becoming a huge welfare state with a repidly shrinking number of individuals paying for government services that we all use. Why should someone making $200,000 pay for police, fire, education, roads, national defense, etc., while someone making $25,000 pays nothing for these same services. No one with an income should be exempted from paying some portion of that income to support the services we all receive at the local, state and national level. There should be no “free lunch”.
Sturgeon Lake
February 20th, 2009 at 5:30 pm
I think its time to go back to the Gov. Arne Carlson tax rates, we were doing pretty well back then, things were appropriately funded and there weren’t alot of complaint about taxes, I sure didn’t mind paying a little more to ensure that the public services were being maintained. The wealthiest in this country has been getting loads of tax relief at the federal and state level, its time to even things out and let the wealthiest pay the same percentage of their income as a state employee making $38,000 while doing a dangerous job. That state employee pays a 2-3% more of their income to taxes than the wealthiest Minnesotan does, why do the wealthiest get a better deal? They already make more money and then they pay a lower rate of their income to taxes. That seems backwards to me. The privileged are rewarded for being wealthy, while the working class works hard and sees little reward. Why are the wealthiest treated better than the working class?
Sturgeon Lake
February 20th, 2009 at 5:33 pm
I do not think there should be any talk of new tax credits or tax cuts during a huge budget shortfall, that makes no sense. Tax cuts for the last 10 years haven’t created many jobs, now have they? If anything we need to increase taxes on those that can afford it. Didn’t the Bible say something like: From those that have much, much will be expected?
New Hope
February 21st, 2009 at 7:43 pm
I think they tried to solve the budget crisis with my property tax increases. The proposed tax increases on my (4) parcels in Itasca County in order of value are:
38.8%, 52.9%, 17.2%, and 35.4%.
Do you suppose someone made a mistake on the parcel getting only a 17.2% increase?
Pipestone
February 22nd, 2009 at 12:08 pm
Increase Revenue: Apply the state sales tax to clothing and services. The only thing I would not tax is food. Apply sales tax to ALL Internet Sales that are purchased by Minnesotans. Ideally, there should be a federal tax on internet sales where the money is redirected back to the states. But I would not wait for the federal government to act.
Park Rapids
February 22nd, 2009 at 5:04 pm
Truth in taxation hearings are expensive and very poorly attended in my northern Minnesota county. Isn’t there a better way?
Balaton
February 23rd, 2009 at 2:44 pm
As long as the Governor keeps his hardline on taxes he will force our cities to add to the evergrowing property tax base.
It is about time our state taxes clothing like all the states around us. I am not sure those who have no job can afford an across the board increase in sales tax, however and feel we must stay away from tax on foods. Certainly those making over $150,000 a year can pay more income tax. I am in the lower income bracket and would gladly pay more income tax if it gets our State back to where it should be.
It just is not fair to cut monies from Cities and then force them to raise taxes. People are already in fear of losing the property they have. Also, this state still gives out welfare checks, I understand. I moved back 5 years ago from the state of WI where we stopped checks 10 years ago. Then of course most of those AFDC people moved to MN and IA. I understand jobs are not plentiful but I also know that there are people who will not take those that are out there. It is time to play hardball without hurting the elderly, disabled and children by cutting programs affecting them.
Wisconsin still gave food stamps,medical and child care to the families losing their checks. I can’t say it was easy to find jobs without experience or training but the cycle needs to be broken. Thinking about tax breaks at this time is simply ludicrous. Maybe the governor needs to look at what the other states in trouble are doing?? Also he needs to cut back on his trip expenditures and what about the salaries of those in the Capitol? How much time do the legislators actually spend in chambers? Maybe they should be paid an hourly rate or a per diem instead of a salary like the rest of us who spend time going to board meetings.
Thank you.
Glencoe
February 24th, 2009 at 1:11 pm
Option 1: Start collecting taxes from the existing casinos in Minnesota.
Option 2: Pass a bill to have racinos in Minnesota which would generate dollars for the state.
Your vote is needed in favor of racinos to help defray the states budget defeicit.
Chanhassen
February 24th, 2009 at 10:10 pm
There’s been a lot of talk about raising taxes on the highest income earners. The justification for this seems to be that they pay a lower percentage of their income in all forms of taxes levied within the state (i.e., state income, state sales, property taxes, etc). These figures seem to exclude the Federal Income taxes paid. It’s kind of like going to a truth in taxation hearing, the government entity at each meeting is not concerned with your total property tax bill. Rather, they’re only concerned with the portion of the bill that they’re responsible for levying. From the taxpayer’s perspective, they can not choose which portion of the property tax bill they pay (i.e., county, city or school), they have to pay it all. Same goes for all the various state and Federal income taxes, you can’t choose which ones to pay, you pay them all. When you’re doing studies on the total taxes all the quintiles pay, I’d like to see you include the federal taxes the different quintiles pay. After all, everyone is paying both Federal and State taxes. I’d also like to see you include dollar amounts, not just percentages. After all, everything is purchased in dollars, not percentages. I’d much rather have 10% of $1,000,000 vs. 12% of $50,000. Showing both the percentage and dollar amounts, of both state and federals taxes, will help us all see if the highest income tax brackets are really paying their fair share. I think it would help everyone to make their own decision as to whether the highest earners are paying their fair share. I think it’s misleading to show only the percentages, and it’s misleading to exclude the amount of federal taxes paid.
Bloomington
February 25th, 2009 at 10:42 am
Approve a private owned Casino at the Mall of America and also approve the RACINO bill. This will add hundreds of millions of dollars to the State Treasury without raising taxes.
Milaca
February 26th, 2009 at 1:26 am
Cut entitlements, and cut taxes. No one should have income from the state in the form of tax credits or in any form. With any effort anyone can contribute something and should not be exempt from paying some tax and especially should not recieve money. Progressive taxation has been tried before which by definition would make it Regressive. Flat tax would be progressive. Government continually expanding its power and scope has been tried before… this is also regressive and doesn’t work. Cut government programs, spending and Bureaucracy. Quit mandating things that have no quatifiable benefit that cost tax payers huge amounts of money and the state large amounts of money to implement and enforce that then in turn increase the cost of our infrastructure maintenance or bureaucracy.
Milaca
February 26th, 2009 at 1:35 am
in response to a private owned casino: poor financial management on a massive scale is largely responsible for our economic dilema. Creating another opportunity for people to spend their money poorly (especially considering the demographics of those that frequent such places)is very short sighted and predatory. The best solution is to cut taxes on businesses that create jobs. The key is “creation” of new revenue not re-allocation of existing funds.
Maplewood
March 5th, 2009 at 12:48 pm
After attending a governor’s budget/citizens’ input meeting in White Bear Lake, an old article in the Minnesota Journal from the Citizens League (Vol. 22, Number 3 of March 29, 2005) reoccurred to me as a real solution to our budget problems and recession. Everyone, Dem and Rep alike, is talking JOBS. It’s the big fear being used to intimidate everyone into submission to one or the other’s philosophical position. The real answer is to promote jobs/business by drastically reducing business income tax [MN is about 8th in the country]. This will help all businesses, including small business to which we give only lip-service when it comes to significant relief or support. [See the archives for the above article at http://www.citizensleague.org
Secondly, for a fairer tax system, switch to a flat-rate tax system for personal income taxes. [See the same article for its argumentation.] As compared to our present system, the wealthy would begin to pay their fair share. Even if these two changes don’t handle all our deficit problems, they should be enacted for the state’s financial health [Remember: about 20 yrs ago 3M Co. moved a major part of its research facilities to Austin, TX because of such high taxes on business. South Dakota is much closer.] and fairness.
st.Paul
March 13th, 2009 at 5:08 pm
Thankyou for asking. We invested in living in the city by doubling the size of our house.
Apparently it was so pretty that our property taxes almost tripled. We take good care of ourselves and plan to live at least to 100. I figured out at our ages of around 60, we would pay $400,000 more in property taxes. We are being taxed out of our state.
I am originally from so dakota. No income tax and not corporate tax. Their state if booming
with little unemployment. You cannot tax our way out of this situation. A lot of port projects must go. We do not spend what we do not have in our home and we expect our legislators to do the same. 2 years, $4.5 million was given to the Port Authority to study and begin to design a garbage burner in our neighborhood. After a lot of public outcry, a cleaner solution was found. Now, if our legislators took more thoughtful time to make such decisions and listened to the public that is highly educated, that big loss would not have had to happen. What else that the public does not know about goes to unwise decisions. Please be thoughtful and careful before ANY money is spent for ANYTHING!!!
Thankyou
Saint Paul
March 15th, 2009 at 3:38 pm
Raise income taxes on the rich. Close tax loopholes that allow companies or individuals to shield income by incorporating overseas or anything remotely similar. Luxury tax on big ticket pleasure items like expensive boats, expensive personal or corporate jets, and other similar items. Then get my property taxes reduced back to what they were a few years ago. When the republicans scream “socialism,” tell them it’s called “civilization” and that their failures and bad policies got us in the pickle we’re in.
morris
March 16th, 2009 at 2:04 pm
taxes need to be raised on the rich and lowered for the poor because they need all the money they can get these days
Eagan
March 22nd, 2009 at 9:41 am
It seems to me that all I’m hearing is TAX and CUT services. What about the REVENUE side of the equation? I have heard somewhere along the line to introduce a STATE run CASINO so we can build a Vikings new stadium that no one wants to pay for. I think this is a great idea….but let’s not stop there. We could balance our budget quickly if we would put a casino somewhere around the Mall of America(one of the most traveled areas) and another at Canterbury Downs(lot of traffic going to Mystic Lake). These two casinos would create jobs that would be taxed and generate gambling revenues that are way over due to the state of Minnesota. Times are different these days and every body wants different things …but nobody wants to pay for them. In regard to Gambling, I hear that gambling will be expanded…well what do you think that has happened in the last 20 years? GAMBLING HAS EXPANDED! People are going to gamble regardless…it might as well be at a Minnesota State run casino so the state can increase state revenue instead of always TAX and SPEND or TAX and CUT SERVICES! Just an opinion.
Shakopee
March 24th, 2009 at 9:59 am
Point#1
Why not eliminate the government sponsored monopoly afforded to tribal casinos and allow RACINOs at the Canterbury Park and Running Aces horse racing facilities? An estimated $100+ MILLION in new revenue to the state would be realized every year. This without FORCING a new or increased tax on anybody. Revenue that could be used for LGA, Education, Healthcare, or any other reason deemed necessary. This plan is supported by more than 70% of Minnesotans surveyed.
Point#2
Why penalized those already suffering a job loss by taxing their unemployment benefits? It is bad enough they have to try and survive on 1/2-2/3ds normal pay, but to tax what they get is simply rubbing salt in the wound.
St. Paul
March 31st, 2009 at 9:03 am
I would like to see a tax on clothing over $100, adjusted yearly for inflation. If people are spending that much on a single article of clothing, they are not worried about the added cost of the taxes. It wouldn’t raise a lot but if we made many small changes such as this, we could take a good chunk out of the deficit.
Golden Valley
March 31st, 2009 at 2:34 pm
My husband (after 41 years in the work force) and my son (a new college graduate) became unemployed in August. Unemployment is low - and then 15% of it goes to taxes.
The legislature, including governor Pawlenty have added new taxes irresponsibly in the past few years, i.e., a baseball stadium…now, two of the three members of my family are unemployed and I’m buying some millionaires a stadium?
Ron Latz wrote me and said that the stadium creates jobs and the taxes are justified. Really? What KIND of jobs? Minimum wage jobs? Surely, there are no “professional” jobs at the stadium. Now, our foreward-thinking legislators are considering raising income tax or sales tax. What happened to the lottery/legal gambling proceeds?
Minnesota has high taxes on EVERYTHING - license plates, fees, sales tax, etc. Give us a break - how should we PAY for these taxes? Oh, yeah - I remember….you’re taxing unemployment!
You are taxing businesses - and even people like us who were born here - out of the state.
Stacy
April 1st, 2009 at 7:57 am
I have worked hard all my life. I have saved. During the DOT Com. bubble I lost. I got “smart” I diversified into things that were not in the stock market. I am not a developer or speculator or a slum lord. I am semi-retired. I have recently recived my government “rent” bill (property taxes). The way I look at it is that I am force to pay $5.33 PER HOUR (assuming 40 hour week) just to have the “privledge” of “owning” or more accuratly “renting” my home and property from the local government. This is the ONLY tax that I have no choice about. For instance, If I only make a small income I only get taxed a little; if I think gas tax is too much I can choose to get a smaller car, drive less, or ride pool, or use the little public transportation we have; if I don’t like the sales tax I can decide to buy less, but NOT with property tax. If I don’t pay it the government TAKES my house! This is VERY regressive.
I understand that much of the property taxes pay for schools. I beleve that I should pay for some for education (even if I don’t have children) because it benifits me too. However the way the money is aquired is UNFAIR to landowners AND the children. Poor areas or less populated areas are discriminated against, and the children in these areas get a poorer education. Additionally old guys like me loose there homes. This funding source must be ELIMINATED. I suggest that a replacement should to allow the counties to have that ablity to have a sales tax.
This is more fair because people with more children will pay more (as they should and everyone pays a little) and if a county gets too “wild” with the tax on its residents the residents can choose to shop in another county. If a sales tax is approved the property tax authority must be ELIMINATED otherwise it has been my experence that we will have both taxes and both at a high level. In addition, a state sales tax increase specfically for funding public schools should be implemented. Additionally no state requirements for schools should be added without corresponding funding being sent with it to the schools. And only the funding provided should be used for meeting the requirement. In other words, if the state requires a teacher for something and only provides $200 for the requirement. The $200 is all the school distict will be required to spend to meet the requirement.
Brooklyn Park
April 3rd, 2009 at 7:37 pm
I agree with Dennis from Mankato that the income tax system needs to be restructured so that the top 10% of wage earners are paying their fair share instead of our current system where the middle class pays a higher percentage of their income than people making over $250,000 a year. We also need to put not only a stop to off shore tax havens for businesses, but stop the property tax breaks for billion dollar companies like Target for example, who moved their Corporate Campus into Brooklyn Park and were granted property tax relief for 20+years. They use our infrastructure while residential property owners foot the bill. If big profitable companies were at least expected to pay a minimum fair share amount of taxes, that would go a long way towards balancing our budget. Kicking the most vulnerable people of our population off of MN care while corporations like Target, Best Buy, and 3M are not expected to share in the sacrifices of helping our State get out of this economic mess makes defies logic.
And if Tim Pawlenty wants to balance the budget by cutting wages and implementing forced furloughs on State workers, he should start with himself and his executive staff first.
Harmony
April 6th, 2009 at 12:07 pm
Balancing the budget and providing services should not be this difficult, it seems to me we all do this at home. Every member does a FAIR share and everyone reaps the BENEFITS.
The biggest problems I’m concerned with are that some are taking advantage of the situation by; 1. Misuse of government funds(though inefficiencies and abuse, either individually or agency wide) and though “top-heavey” administrations of all kinds, 2. requiring more because they think they are worth more(hence the disparity in class status) reguardless if that is, welfare or a wage, 3. A condecending attitude coming out of the Goveners Office; if your on the bottom of the food chain in this state your worth cutting (the cuts that are needed should be vertical from top to bottom, not horizonal from bottom to top).
Maybe it’s just a matter of consideration for another person/s, or pride in ethical behavoir. It seems hold true for a community, in simply raising a vegetable garden and giving the over supply to ones neibors, and in turn those neibors watch your house while your away, or more simply, opening a door for another person. It’s all give and take no matter the situation or currcumstance,(recocnizing some can’t give anymore and some need to take less). Maybe a person needs to change her/his attitudes, could be done by practicing the use of words like us, we, our, instead of them, those and you.
Saint Paul
April 11th, 2009 at 1:13 pm
I endorse the proposals that would increase taxes in order to continue to ensure the basic needs of all Minnesotans are met. This includes adopting equality in income taxation, increases in sales and use taxes, and closing loopholes in business and personal taxes. I do not want to see Minnesota join the ranks of those states that are decreasing support for health and human services as more and more people are falling through the cracks.
Eagan
April 26th, 2009 at 9:39 am
Once again I’m hearing the same old story out of the Minnesota legislatures on BOTH sides of the isle. TAX, TAX, and more TAXES!.It is very evident to me that any idea of a state run casino has not even been considered once again. The probable reason in my mind is BIG LOBBY MONEY going to both political parties for there campaign re-elections…(what else could it be)that way the tribe is still in the driver seat of having the only party in town and monopolizing the gambling industry here in Minnesota. In regard to the next election….I have made up my mind already….out with every incumbent on the ticket. Once again just an opinion of a Minnesota resident and a TAX PAYER!
St. Paul
April 28th, 2009 at 6:46 pm
I have read a lot of the comments above and see a lot of “lets raise this tax, lets raise that tax”. When does it stop? The tax structure in Minnesota is the most rediculous structure in the country. The property taxes don’t even make sense, get off the backs of the smokers, who get hit every time some body says “we need more money, let the smokers pay for it. Lets take away some of the freebies and gifts of money and services for the illegals and generation welfare people. Make the politicians work for the extravagant perks and salaries for their part time jobs they hold. lets be fair to the poeple who actually pay the bills of this state, most of whom make under $50,000 a year.
Forest Lake
May 13th, 2009 at 1:33 am
Simplify the State Sales tax system which will increase compliance, promote fairness and generate more revenue. Any business who sells a product or performs a service in Minnesota pays a flat rate sales tax based on all sales and/or services performed. Example: Gross monthly sales/services @ $10,000 x .05 = $500 monthly sales tax. The business can choose to charge the consumer the .05 at the point of purchase or increase prices by .05 to recoupe their costs. Also, I’m not much of a gambler myself, however, a State run casino would be a really good idea! What’s the problem?
St. Michael
June 6th, 2009 at 10:56 am
Issue a state wide tax for all non Minnesota residents who work but do not reside in the State.
Residents from surrounding states are taking advantage of Minnesota’s infrastructure, Vehicle lisencing & employment while living in surronding states and taking advantage of their property taxes.
Start issuing citations for both personel & commercial vehicles that continiously drive in the left lane on the interstate highways.
Issue 1 lisence plate tag instead of two that stay with the owner and not with the vehicle. Who’s stupid idea was this in the first place?
While I’m on the vehicle tag issue why does Minnesota automatically replace them every seven years anyway?
I also find it hard to belive that a new more durable plate has to be issued for registered vehicles. Automobiles have been around since the late 1800’s and they have been plated since the early 1900’s you mean to tell me that State of Minnesota still can’t make a decent plate?