Historic tax increases approved [UPDATED]Published 9:32am Friday, May 3, 2013 Updated 11:36am Friday, May 3, 2013
Following a nearly nine-hour debate on the Minnesota House floor, House Democrats approved a $2.6 billion tax increase proposal that will impact every Minnesotan.
All Republicans voted to oppose the measure. Their bill will result in a large portion of Minnesota filers receiving an income tax increase with income as low as $22,000. The House Democrat plan also would raise taxes on Internet purchases, sports memorabilia, cigarettes, and alcohol, to name a few.
This would be the largest tax increase in the last three decades. They also are proposing hundreds of millions more in fees, bringing the total price tag to some $3 billion.
This proposed increase is so big it is hard to comprehend. Estimates show this would cost $550 per person in Minnesota.
It really concerns me what the impact will be if we take this amount of money out of the economy and give it to government. Our economy is growing and recovering from the Great Recession, but this could deal us a significant setback.
It also concerns me Democrats say part of the reason they are raising taxes on tobacco and alcohol is to discourage usage. What happens if that is indeed the case and behavior is steered? What are the long-term affects?
We could find ourselves in big trouble down the road if we increase state spending based and tie ourselves to sources of revenue in decline.
Democrats said they were going to “tax the rich” but the simple fact is this: They are raising income taxes on Minnesotans in every tax bracket. Everyone will pay more for beer, cigarettes, rental cars, baseball cards and the list goes on and on.
We can make government more efficient and more effective. We should give this recovery a chance and keep Minnesota on the path to a healthier economy.
Rep. Bud Nornes