Minnesota Lawmakers Pushing for Tax Reform

Published On: 22nd January 2013

From The Internet

Minnesota lawmakers are starting to push for tax changes, including imposing a tax on the purchase of clothing. Lawmakers say that their proposals would simplify the tax code and balance the state budget.

So far, dozens of bills have been proposed that could affect sales tax, income tax, and property tax. Both republicans and democrats feel that tax reform is a priority, although they are disagreeing on what changes are the best ones to make.

The proposals include taking such actions as raising income taxes on those making the most money and to reduce property taxes for everyone. The bills that have been proposed have been created for the sole purpose of bringing back balance.

Of the proposals, one states that clothing purchases of over $200 would be taxed, while another bill proposes ending the clothing tax exemption in exchange for a clothing tax credit. The Mall of America is not on board with such proposals because of how many individuals come to Minnesota to buy clothing for the clothing tax exemption. It is believed that implementing a sales tax would affect the mall, which is the state’s largest tourist site.

Legislators feel that adding a clothing tax would not drive away business. The reason why this is believed is because individuals living along the North Dakota/Minnesota border go to malls in Fargo to shop and North Dakota charges sales tax.

Broad support has also been given to a bill that would allow Minnesota to collect sales tax for items sold on the Internet. Business owners state that such a tax would make doing business fairer for the brick-and-mortar stores in Minnesota.

While every possible tax has been proposed in Minnesota, there is a lot of conversation that still needs to occur that goes beyond the changes and the bills. The first step in the process will be discussions about ideas and policies. This will help the financial situation of the state to become clearer. Once the forecast is updated in February, lawmakers will know how much money the state will need so that the proposals can be adjusted.

Adding to the difficulty of balancing the budget is the fragile state of the economy and how Minnesotans cannot afford additional taxes imposed on them.

Source: http://www.wadenapj.com/event/article/id/29294/group/News/