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Keyword: mn2013

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  • The 'pyramid' problem with Gov. Dayton's sales-tax hike

    02/03/2013 8:01:52 AM PST · by TurboZamboni · 6 replies
    pioneer press ^ | 1-27-13 | john spry
    Gov. Mark Dayton wants to tax the sale of food, clothing, and just about everything else you buy in the worst possible way. His budget proposes a $2.1 billion, or 20.7 percent, sales tax increase. Since everyone pays sales tax, everyone will pay Dayton's sales tax increase. But it's worse than that. Dayton's tax plan violates the basic principles of tax reform. It intensifies the pain of taxation by imposing hidden taxes on intermediate business purchases. This causes "tax pyramiding," which is a big mistake. According to non-partisan legislative researchers, "Standard tax policy principles argue that intermediate business purchases should...