Once again, Tom Horner does a nice job of advocating for the wealthiest Minnesotans ("Assessing 'tax the rich' and how Minnesota can meet its needs," Opinion Exchange, Jan. 3). His premise is that high-income Minnesotans are taxed at a higher rate than other Minnesotans and that higher consumption taxes and other non-income taxes will be necessary to meet the future revenue needs of Minnesota government.
Horner ignores the fact that the top 10 percent of earners in Minnesota face a lower overall state and local tax burden than other Minnesotans. Minnesota Department of Revenue figures show that the top 10 percent of Minnesota earners have a total Minnesota tax burden of 10.5 percent when including state and local sales, property and other taxes. By comparison, the middle-income groups in Minnesota have a state and local tax burden of more than 12 percent. (See Table 1-5 on page 14 of the department's 2015 Tax Incidence Study for details — http://tinyurl.com/hho4s92.)
So, Minnesota does not have the "tax the rich" approach claimed by Horner. The recent income tax increase on top earners may have increased the fairness of tax collection in Minnesota, but there's no basis for claiming that Minnesota is "soaking" the rich. Building on this false premise, Horner advocates that more state and local government revenue come from consumption taxes. But that would unfairly push more of the tax burden on middle- and low-income taxpayers in the state. Minnesota ranks high for tax fairness, according to a study by the Institute on Taxation and Public Policy, because it relies more on progressive income taxes than regressive consumption taxes. (See http://tinyurl.com/hjw6hes.) Horner would seemingly have us adopt the model of states like Texas, Florida and Washington that unfairly push consumption taxes on the backs of the poorest citizens, who end up paying proportionally up to twice as much of their incomes in taxes as the 1 percent in those states.
Let's protect and increase tax fairness in Minnesota, not transfer tax burdens from the rich to the poor and middle class.
Joshua Schneck, St. Louis Park
MEDICAL DEVICES
If you want to know about influence, here's your lesson
I don't think that we will see a much clearer report on the influence of corporate wealth on our democratic processes than the Jan. 3 story about the contributions of medical-device companies to the campaigns of U.S. Sens. Amy Kobluchar and Al Franken and U.S. Rep. Erik Paulsen ("Device tax relief a pricey victory"). Despite Minnesota's support for the Affordable Care Act, these two Democratic senators and a Republican representative voted to rescind its financial support. Political contributions of between $55,000 and $97,000 for the three was all it took to save Medtronic $135 million in taxes in fiscal year 2015, although the company did have to spend $10 million on lobbying in 2013 and 2014. The story reports that the tax had little effect on corporate profits.
What could be worse? Well, in Minnesota, due to legislative inaction, political contributions can be made secretly, so that we cannot even connect the dots.
George Beck, St. Louis Park
The writer is a former chair of the Minnesota Campaign Finance and Public Disclosure Board.
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