Tag Archives: Mark Dayton

Minnesota One of the Worst Tax Climate States

Dear Friends:

The non-partisan Tax Foundation recently released the 2014 edition of the State Business Tax Climate Index which ranks Minnesota in the bottom ten states that suffer from “complex, non-neutral taxes with comparatively high rates.” Minnesota dropped from 45th to 47th place on their list. That is not the right direction. According to the report, Minnesota “enacted a package of tax changes that reduce the state’s competitiveness.” The new taxes include a new sales tax on personal vehicle repairs, farm equipment repairs, and a retroactive hike in the individual income tax rate. You can find the full report here: http://tinyurl.com/qg4j64d.

Governor Mark Dayton and the Democrats’ 2013 all tax budget can take most of the credit for this and will take more from hard working Minnesota families by implementing new taxes and failing to conform to some federal tax codes.

 Some examples of these new taxes include:

 Farmers Tax: Farmers and all consumers will be affected by the new sales taxes on warehousing and storage. Items such as propane, fertilizer, groceries, etc… may be affected by this tax.

Small Business Tax: This tax imposes new “Business to Business” sales taxes of $314 million over FY 2014-15 through a sales tax expansion including warehousing and storage, electronic and precision equipment repair, and commercial and industrial machinery and equipment repair.

 Tax on Rural Broadband and Cellular Services: Cable, telephone, and cellular companies must now add a sales tax on routers, switches, amplifiers, and digital processors that they purchase. Former DFL Speaker of the House Margaret Anderson Kelliher has even expressed concerns over these new taxes. There “will be slower adoption of high-speed Internet in outstate Minnesota,” stated Kelliher and that this new tax is a “step backward.”

Motorist (Wheelage) Tax: Under current law, metropolitan counties can collect $5 on every vehicle, per year. Under a new law passed last session, counties are allowed to collect $10 from 2014-2016 and up to $20 thereafter on every vehicle your family owns.

Adoption Tax Credit: On your federal taxes, families adopting a child may exclude up to $12,970 in employer-provided adoption benefits. On your state taxes, there is no longer a credit for adopting a child. Your family will now pay more when going through the adoption process.

Marriage Penalty: As estimated, 650,000 Minnesota families will pay on average $120 more per year in taxes after the Democrats defeated a Republican amendment to fix this problem. Marriage penalties occur when a family filing jointly would enter a higher bracket than if they had filed separately.

We know that higher taxes don’t lead to a healthier economy. Regular session starts again in February and the bottom line is that before we take another dime from hardworking Minnesota families, we should go line-by-line through the budget and cut the wasteful spending. These taxes are increasing costs for hardworking taxpayers while padding the coffers of the state to spend tax dollars on wasteful and ineffective programs. A better way to a strong, healthy Minnesota economy is to promote economic growth, and defund and remove wasteful government.

Please do not hesitate to contact me if you have any questions or comments. I can be reached by telephone at (651) 296-3826 or (855) 407-7386, by e-mail at sen.torrey.westrom@senate.mn, or via mail at 107 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.


Senator Torrey Westrom

District 12
107 State Office Building
St. Paul, MN 55155
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Dayton’s Shell Game Sends Mixed Signals On Middle Class Taxes

Minnesotans beware.

Governor Mark Dayton has been very clear on where he stands with raising taxes on businesses and “the rich” – yes you.

It’s much harder to figure out where Governor Dayton and the Democrats are coming from on the issue of taxes and the middle class.

They held a press conference this week touting new projections that property taxes would actually decrease in 2014. Keep your eye on those projections, by the way – they come from the same agency that predicted e-pull tabs would finance the new Vikings stadium.

So the Governor says low property taxes are a good thing for hard-working Minnesotans. We agree. But he had to raise over $2 billion in new taxes and fees, much of them on the middle class and even poor Minnesotans, to pay for lots of things including his supposed $121 million property tax reduction.

So which is it? Are higher taxes good or bad for the middle class?

Perhaps Minnesota families can use their projected property tax savings, if it ever materializes, to pay for all of the other cost increases they will experience because of the Dayton/DFL 2013 budget:

•Higher energy bills.

•Fewer choices and higher costs for childcare under forced unionization of childcare.

•Higher premiums, higher co-pays, higher prescription drug prices and even fewer hours at work because of the healthcare exchange legislation.

•New tobacco taxes.

•Higher costs to download music and other files from the Internet.

•Higher costs for car rentals.

Each day it becomes more apparent – Republicans stood against wasteful government spending and for an economic recovery that would continue producing middle class jobs, and what Mark Dayton and the Democrats really wanted was bigger government and more spending.

Yes Minnesotans, beware. Despite their spin, the Democrat’s all-tax-increases budget taxes everyone. And raising taxes in one area to supposedly reduce taxes in another is more than a gimmick, it’s a shell game. Make sure you are watching their other hand.

Prepared and paid for by the Republican Party of Minnesota,
Keith Downey, Chair
Not Authorized By Any Candidate Or Candidate’s Committee

Focus on Jobs!

From the State Party:

“Gov. Dayton Needs to Focus on Why Jobs Are Leaving” – Keith Downey, chairman: Minnesota Republican Party

We understand Governor Mark Dayton was to celebrate the grand opening of the business Endeavor Air today, but a health problem kept him away. On a personal level we wish him well, but when he is back on his feet we encourage him to also concern himself with the loss of another Minnesota business.

Navarre Corp announced it is pulling up their Minnesota roots and moving to tax-friendly Texas. The move means 150 Minnesota families will be scrambling for employment in an already tough job market.

Today’s announcement brings back painful memories of another Minnesota company that chose to expand in Texas – 3M. We like to brag about our high ranking in Fortune 500 companies, but when is the last time a Fortune 500 company started here or relocated here?

After his ribbon cutting duties are finished, Gov. Dayton should immediately track down a Navarre executive and conduct an exit interview to find out exactly why they are moving.

  • Did their accountants run the numbers on the impending tax increases due to kick in next week and decide the Texas business climate was more favorable?
  • Do they have warehousing costs that will soon be subject to a new tax that does not exist in Texas?
  • Are they concerned about the increasing energy costs that will hit every home and business because of the new costly mandates passed by the 2013 Democratic legislature?
  • Do they simply no longer feel welcome to grow their business in Minnesota after listening to the drumbeat of negativity toward business coming from Dayton’s office?

Whatever the reasons, Mark Dayton himself needs to find out why this important Minnesota company is heading to Texas with 150 good paying Minnesota jobs.