Do you favor Gov. Dayton's proposal to extend the state's sales tax to most services and some clothing while lowering the overall rate slightly?
No. Sales taxes on services would be a huge imposition on many small businesses and consumers
94 votes (70%)
Yes. Broadening the sales tax would provide a more stable source of revenue for the state.
41 votes (30%)

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12 comments on this item

I propose that governor Dayton "donate" his entire trust fund to the state of MN. Let him live on just his salary as governor. When he loses the next election,(and he will), perhaps he can get a job as a substitute teacher and learn to live within a budget. Heads up politicians-we are tapped out. No more spending. No new projects, 40 million for all day kindergarten-a resounding NO! Get out the sharpened pencils and cut the fat. We can't afford Dayton's business closing/moving plan, or the new taxes on everything and everybody.

Wowser wowser wowser ... did that comment above make great sense. Thanks for the clearly thought out critical thinking on this one!!!

Thankfully, we don't have a governor like Scott Walker who is considering raising sales tax to 13% so he can eliminate income tax in his state. Hard to imagine raising the sales tax even that high could make up for losing $7 billion in income tax a year but the upside for Minnesota would be more Wisconsinites shopping in our state.

I would look forward to the top tier Minnesotans not being able to pay a lower tax rate than the rest of us do. I'd also like to see our state regain the nearly $2 billion that MN corps and wealthy are hiding in offshore tax havens, more than in all but five states. Mpls Star Tribune, 2/6. Over $2 billion would certainly make a big dent in our budget shortfall. Tax dodging is not an admirable trait, imo. What ever happened to personal responsibility?

Say what you like about Scott Walker but you will find no Minnesota politicians talking wo businesses in Wisconsin claiming "Come to Minnesota for lower Taxes!"

Sounds like a plan. Let's lower the rate but tax in a broader way. Surely the citizenry will soon forget and we can raise the rates again.

This reminds me of the bait and switch political move of the late 60's when we got the sales tax as a "temporary measure".

I hope Scott Walker runs for president. I would love to see no income tax in MN with a 7% tax on everything we buy. Used goods would be exempt. Wisconson has the right idea, and a balanced budget.

Mr. Dayton's proposal would bring in $2.1 billion in additional revenue, which shows the increased amount each individual would have to come up with. Talk about a budget shocker. By the way, the governor needs the money to finance a nearly 8% increase in spending.

And what about the proposed snowbird tax? It applies to property owners who spend two months or more in Minnesota and the rest of the time in another state. The governor wants to tax income from capital gains and dividends, as well as stocks and bonds. And he would collect it on income earned not just during months spent in Minnesota, but also months spent in residence outside the state.

Rick, I am ashamed for you. You failed to mention "entitlements" above. Little memory lapse? (and yes, I know it doesn't fit in there, but ... )

Joel, I must be slipping! I'll do better soon and complain about the growth of spending, but for now I am shocked at Governor Dayton's proposal to tax snowbirds. He may be wealthy, but he isn't very bright.

Snowbirds are summer visitors with state residency elsewhere. Does he seek to destroy tourism? People come to Minnesota for the summer and leave lots of money. It would be darn easy to enjoy Wisconsin, northern Michigan, Montana or any number of other places for two, three or four months.

He clearly hasn't bothered to ask northern Minnesota business people how they would do without the snowbird influx every summer.

Rickster: I remember the "temporary" sales tax. It came to be known as the "Levander Penny" after Governor Levander. It never went away, only increased in successive years.

I favor a fair tax. But that will never happen. In lieu, I would be willing to look at a "user tax", which would be the fairest tax of all. Wealthy people, who allegedly spend more money, would be taxed more. But then you have those at the bottom end of the income scale, like me, who would have to pay taxes on food, clothing and services. My solution...keep the exemption on food, clothing and services as they are essentials for all, including the rich. But tax the rest, equally across the board, and slap a flat 3% income tax on all income, including tax free bonds, securities and accounts set up out of state (that means South Dakota, Governor Dayton) or in foreign havens such as the Caymans and Switzerland. All this, must be accompanied by a reduction in spending across the board, but mostly in "feel good" areas such as environmental protection, teacher's contracts, roads and bridges (both could be sold to private party operators in major metropolitan areas and converted to toll operations) thereby costing only the users taxes.

These are only thoughts for discussion.

Owners of Electric cars should be assessed an extra $2000.00 annually when they renew their license plates, since they don't buy gas, which is the source of revenue for road construction and repair. Bicyclists should be assessed an extra $1000.00 annually when they renew their licenses, if they buy them at all, since they use the roads and have trails built exclusively for their use with gas tax money. Got to close those loopholes, don't we?

The proposed sales tax would hit everyone in many areas: clothing over $100, admissions and memberships, over-the-counter drugs, barber shops, hair salons, nail salons, health clubs, veterinary services, all lessons such as dance, golf and tennis, auto repair, household goods repair, storage services, design services, snow plowing, computer services, cleaning service, employment agencies, publications such as newspapers and magazines and on and on.

Then there are business-to-business taxes. A baker, for example, will pay a tax on his accounting, legal and advertising services. Do you think he can absorb the extra expenses? No, he will be forced to raise the price of his bread. Same with all other businesses.

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