Let’s control spending, live within means
Gov. Dayton’s tax plans would, contrary to his representations, directly impact middle class taxpayers. For example, anyone selling real estate, making a contract, forming a corporation, filing a bankruptcy, getting a divorce or being charged with a crime will have a tax added to the cost of their lawyers’ fees.
Taxing people who are already in a personal crisis, whether it is facing criminal charges, financial distress, or having an upheaval in their family is mean spirited at the least. This will be paid by middle class clients. Likewise, a person getting their car worked on will pay a tax on the labor charges for the work being done. Getting your hair cut or a permanent will be taxed, does our governor really think middle class people don’t get their cars repaired or their hair cut? This will affect middle class customers. The $100 clothing limit is illusory. Most winter coats and winter boots, for example, are priced in the $100-plus range. Taxing these necessities will hit middle class customers.
The politicians are billing this as a tax reduction, due to a rate change, but how long will it be before those rates are returned to their present levels by our elected representatives?
The other forgotten thing not considered is how much revenue will be lost due to the impact on merchants who can no longer count on tourists to come for tax-free shopping on clothing, and the other economic impacts on jobs that are lost due to changes in the demand for such goods? I am well acquainted with a number of people who cross the Iowa-Minnesota boarder to shop for clothing because it’s not taxed here. They will have no incentive to do so under these new tax proposals.
While I agree that we need some additional revenue to support necessary public programs, we also need to keep control of spending and live within our means. It is up to the citizens of Minnesota to make their voices heard with regard to these proposals to make sweeping changes to the costs of goods and services in Minnesota.