On Wednesday night, the House passed legislation that raises taxes on all hardworking Minnesotans by nearly $2.7 billion. All Republicans and several Democrats voted against the bill, which narrowly passed.
House Democrats do not have the best interests of our area in mind, and cannot resist growing the size of government to historic levels. They campaigned on ‘tax the rich,’ but this proposal impacts everyone from the wealthiest to the poorest of the poor. Inevitably, you and I are going to lose more of our paychecks in order to fund wasteful programs that we do not need and cannot afford.
Here is a rundown of some notable tax increases in the tax bill they passed this week:
· Cigarette tax: Increase from 48 cents to $2.83 (113% increase) proceeds go to the general fund not used for tobacco illness or cessation programs
· Alcohol tax (203% increase): distilled spirits (119%), 3.2% beer (965%) and other beer (503%). NOTE: Summit Brewing said its annual state tax bill would jump from $550,000 to $2.3 million under House Democrats’ tax proposal.
· Income-tax increase: Adjusts the tax brackets pushing hardworking citizens into higher tax brackets in all three levels. Even those with incomes as low as $24,000 get a 1.7% tax increase under the bill.
· Elimination of the charitable contribution deduction for itemized deductions and replaces it with a non-refundable credit for 8 percent of the amount over $400 donated
· Elimination of the incentive to purchase long-term care insurance at a time when the state demographer is warning us of an aging population
· Sports memorabilia tax: Would add a sales tax of 10 percent to items related to professional sports
· Rental car tax: Increase from 6.2% to 9.2%
The plan would make Minnesota the state with the second-highest income tax rate. These are regressive taxes that would hit virtually all Minnesotans. The hard-working citizens of our state will all pay more regardless of their income level.
The bill will go on to merge with the Senate version before coming back to the House for final passage. Thank you for your support and interest during this busy time of session.
Please contact me with your thoughts and questions.