Tommy Boy, Excellent article. I am happy to see you pivoted to local/state politics after that puff piece you wrote about Kamala Harris. Local & state politics is the arena where I think you can have the biggest impact. You should consider throwing your hat into the ring again for governor. Trump & Biden proved your never to old. Unfortunately Walz will be in the job for a few more years.
How may mornings did you go to elementary/high school without your parents providing the opportunity to eat a full breakfast &/or pack a lunch? Your editorial did not include any reference to "parental responsibility". I think it's the parents responsibility to make sure their child (student) is successful in school & life. Not the state. Not the teacher.
The mindset that the government will take care of you from erection to resurrection is misguided. Sending your son or daughter to school without breakfast & a lunch boarders on child abuse. Happy New Year. All the Best, Rick
PS: Homeowners over 65 should be exempt from school taxes added to their property tax bill.
"The state should be taxing consumption not work, investments and savings. Yes, that means cutting income taxes and relying more on sales taxes. When done thoughtfully (instead of today’s haphazard approach of layering local sales taxes onto the state’s levy), a combined system of sales and income taxes can be fair, progressive and far more transparent. It also can be more of a lure to those thinking of moving to Minnesota and those people Minnesota would do well to keep. Consumption taxes also create incentives for job creation, expansion of existing businesses and business start-ups." I'm curious how this could be more progressive? Sales taxes are generally considered regressive taxes...how with transparency do they become progressive? Already MN does not tax clothing. What else should be exempt in order to make the tax more progressive?
Thank you for the comment and question. Making sales taxes more progressive isn’t a matter of expanding exemptions but the contrary - making fewer purchases, including services, exempt from taxes. There are many ways to assure progressively in sales taxes. One is to reduce the overall rate (and make it consistent across the state) but expand the base to include services and most purchases while exempting prescription drugs and grocery-store food and perhaps a few other necessities. Included in the sales tax would be clothing. Multiple studies have shown that the wealthy purchase more clothes and more expensive clothes. Progressivity is assured by giving lower-income Minnesotans a graduated refundable tax credit that essentially reimburses them for some or all of the sales taxes they incur.
Why change? For several reasons.
First, it is more transparent. You pay the tax when you make a purchase. A consumer knows exactly how much tax is being charged. There are no hidden tax loopholes.
Second, it is more stable. Income taxes are notoriously volatile. Sales tax revenue tends to be more stable and predictable.
Third, it is a better tool to attract and retain new Minnesotans. Think of a family investigating Minnesota as a place to live. They look at an income tax rate of nearly 10%, a sales tax rate that in some cities now is 9% or more and high property taxes. Too often, people don’t do the research on what is exempted from sales taxes or what deductions and credits might lower the income tax rate. They just look at the rates and run screaming. Switching to a broader sales tax would allow Minnesota to reduce the sales tax rate and the income tax rate and make Minnesota far more competitive.
Tommy Boy, Excellent article. I am happy to see you pivoted to local/state politics after that puff piece you wrote about Kamala Harris. Local & state politics is the arena where I think you can have the biggest impact. You should consider throwing your hat into the ring again for governor. Trump & Biden proved your never to old. Unfortunately Walz will be in the job for a few more years.
How may mornings did you go to elementary/high school without your parents providing the opportunity to eat a full breakfast &/or pack a lunch? Your editorial did not include any reference to "parental responsibility". I think it's the parents responsibility to make sure their child (student) is successful in school & life. Not the state. Not the teacher.
The mindset that the government will take care of you from erection to resurrection is misguided. Sending your son or daughter to school without breakfast & a lunch boarders on child abuse. Happy New Year. All the Best, Rick
PS: Homeowners over 65 should be exempt from school taxes added to their property tax bill.
"The state should be taxing consumption not work, investments and savings. Yes, that means cutting income taxes and relying more on sales taxes. When done thoughtfully (instead of today’s haphazard approach of layering local sales taxes onto the state’s levy), a combined system of sales and income taxes can be fair, progressive and far more transparent. It also can be more of a lure to those thinking of moving to Minnesota and those people Minnesota would do well to keep. Consumption taxes also create incentives for job creation, expansion of existing businesses and business start-ups." I'm curious how this could be more progressive? Sales taxes are generally considered regressive taxes...how with transparency do they become progressive? Already MN does not tax clothing. What else should be exempt in order to make the tax more progressive?
Thank you for the comment and question. Making sales taxes more progressive isn’t a matter of expanding exemptions but the contrary - making fewer purchases, including services, exempt from taxes. There are many ways to assure progressively in sales taxes. One is to reduce the overall rate (and make it consistent across the state) but expand the base to include services and most purchases while exempting prescription drugs and grocery-store food and perhaps a few other necessities. Included in the sales tax would be clothing. Multiple studies have shown that the wealthy purchase more clothes and more expensive clothes. Progressivity is assured by giving lower-income Minnesotans a graduated refundable tax credit that essentially reimburses them for some or all of the sales taxes they incur.
Why change? For several reasons.
First, it is more transparent. You pay the tax when you make a purchase. A consumer knows exactly how much tax is being charged. There are no hidden tax loopholes.
Second, it is more stable. Income taxes are notoriously volatile. Sales tax revenue tends to be more stable and predictable.
Third, it is a better tool to attract and retain new Minnesotans. Think of a family investigating Minnesota as a place to live. They look at an income tax rate of nearly 10%, a sales tax rate that in some cities now is 9% or more and high property taxes. Too often, people don’t do the research on what is exempted from sales taxes or what deductions and credits might lower the income tax rate. They just look at the rates and run screaming. Switching to a broader sales tax would allow Minnesota to reduce the sales tax rate and the income tax rate and make Minnesota far more competitive.