Last year the DFL claimed property tax reform was part of their plan; did they forget to mention the billions of tax increases planned? The income tax hike is getting attention because it's targeted at those the DFL say are rich and are not taxed enough.
From the tax incidence study that the DFL and the media are likely to use you will find that: the top 1 percent of income earners in Minnesota pay 25 percent of the total Minnesota income tax; the top 5 percent pay 43 percent of total income tax; the top 10 percent pay 56 percent of total income tax; and the top 20 percent pay 72 percent of total income tax.
The top 20 percent of income earners shoulder 72 percent of the income tax burden already. The remaining 28 percent of the tax burden falls on the other 80 percent of income earners.
The bottom end: the middle 20 percent ($35,554-$58,509) pay 9 percent of total income taxes; the bottom 20 percent pay -.42 percent, which means they pay nothing, but still receive a tax refund; and the bottom 10 percent pay -.25 percent.
Taxing the rich is easy. But, this tax increase is just cover for all the other tax increases proposed that will affect you. A 50 percent gas tax increase, a surcharge on energy bills, state sales tax additions and increases, tab fees increased, 50 percent increase in 911 fee, wheelage tax, 50 percent increase in mortgage tax, notary fees increased, light bulb tax, paint tax, small business property tax increase and increased taxes on metric sales beverage: distilled spirits (up 228 percent); wine (up 450 percent); hard cider (up 800 percent); regular beer (up 790 percent); and 3.2 percent beer (up 457 percent).
We don't have a revenue problem in Minnesota; the DFL in St. Paul has an insatiable appetite to spend, and return to the tax-and-spend is the problem in Minnesota.
David Anderson,
Lonsdale
