Dayton challenges critics of Minnesota tax plan

  • Article by: ADAM BELZ , Star Tribune
  • Updated: February 16, 2013 - 8:59 AM

Gov. Mark Dayton’s office on Friday waded into the red-hot center of the debate over his broad tax proposal, attempting to clarify the rules on when Minnesota businesses would pay the state sales tax. Service businesses — from law firms to accountants to advertising agencies — have strongly protested Dayton’s plan to have them pay state taxes for their dealings with other companies, especially the prospect of sales involving clients outside Minnesota. Some law firms have even threatened to leave the state.

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serfdumbFeb. 15, 1310:55 PM

Some law firms have even threatened to leave the state. - That's something liberals don't understand. People choosing with their feet. If Dayton wants to tax snow birds who live here for more than 60 days, I think we should tax governors here for more than 60 days that leave their trust funds in another state. That is only fair. Pony up Gov.

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potter101Feb. 15, 1311:07 PM

Business apposes it, their totally fine with us carrying the full load instead of them paying part of it. I don't feel nothing about their predicament. Its a great plan for the states and it's people , I would guess by my closest estimate is that 80% of the state will get a refund.Looks like close to $750 dollars a year extra in my pocket and I know for a fact it's easier for them to pay it then me. I feel zero guilt and none of the 80% who benefit by it should. There is going to be almost zero people put out of work , no matter what they say. because the truth will show that the price will be raised to compensate for it. I need none of what they offer, so it means nothing to me. I figure it will take about one day for all these wining tax them instead people to get use to paying 5 1/2 % more ,like I have been all along. I will guaranty that it will be just as easy them paying for it as it was for me. Simple you improve the quality of education with this money and to me it is improving my quality of life. I hate to talk to stupid people.

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potter101Feb. 15, 1311:11 PM

serfdumb Feb. 15, 13 10:55 PM Some law firms have even threatened to leave the state. - That's something liberals don't understand. People choosing with their feet. If Dayton wants to tax snow birds who live here for more than 60 days, I think we should tax governors here for more than 60 days that leave their trust funds in another state. That is only fair. Pony up Gov.*********************************Your parties candidate has done this and worse , he has exported jobs and he is a and was a future capitalist. The worst type of investor in this country. That is the best description of Hypocrisy that exists.

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potter101Feb. 15, 1311:16 PM

Dayton it's a great plan go for it, I hope it stay exactly the way you want it. It will improve the quality of life in this state and maybe it will chase some of the me first, all about me people away.

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jcinmnFeb. 15, 1311:48 PM

Wah! Wah! Wah! Corporate America has been coddled too much by Reagan, Bush, Bush and Pawlenty. It isn't even about paying a tax! All they have to do is collect and forward the proceeds! They're gouging their clients already. If they want to be greedy let them move out of state and re-liscensing themselves out of state. We've got too many lawyers as it is.

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bpurdyFeb. 15, 1311:54 PM

The problem is most service companies work on very thin margins. Applying this tax won't cause them to raise their prices...because their customers won't accept an automatic 5.5% price increase...so guess what happens? Service company employers will lower the pay for their people! Wake up Minnesota! Although the consequence may be unintended, it will result in lower wages. Again, the middle class suffers. Dayton is simply squeezing the water from one end of the balloon to another. The only way to have more to invest in education and other things is to help business to be more successful, naturally causing salaries to rise, which in turn causes more spending and a larger tax collected. That, along with cutting costs in our government is the only way to get to a better way of life.

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reader2580Feb. 16, 1312:07 AM

Customers ultimately pay all taxes anyhow. A lot of businesses stand to lose a fair amount of business if they have to charge 5.5% more. Customers won't care that the money goes to the state.

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mchristiFeb. 16, 13 2:26 AM

Bpurdy, Perhaps you haven't noticed when you go shopping, but look at your receipt. There is the price of the products you bought, the subtotal, the sales tax, and the total. Businesses don't pay the state its sales tax out of the price of the product. Some of you seem to want everyone forget how the sales tax works so that you can muddy the waters. You, as the consumer of the good or service you just purchased, pay the tax. The business simply collects it and passes it along to the state. That's the same thing with any of these service based business whose services may be taxed for the first time. They won't need to increase their prices by 5.5 %. They can and probably will have the same rates as before. They will just collect the tax that the end consumer (be it an individual or a business) owes the state for their purchase of those services. It won't effect the money those businesses have to pay their employees, because it won't be taken out of what they charge customers, but a tax collected in addition. A broadened sales tax will better meet the needs of the state and should provide for better long term stability over relying on a rather narrow part of the state's economy as the basis for our tax revenue.

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gophfan10101Feb. 16, 13 6:28 AM

"Dayton it's a great plan go for it, I hope it stay exactly the way you want it. It will improve the quality of life in this state and maybe it will chase some of the me first, all about me people away."

That's one thing I get a kick out of when it comes to Liberals. They think that someone who wants to keep they money THEY EARN is a person who is "Me first, all about me" yet someone who wants to take money from that person to support their own needs is not selfish.

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nonewtaxesFeb. 16, 13 6:47 AM

Like it or not, jobs will leave if this passes. The remaining taxpayers will have a larger tax bill as a consequence.

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