Governor Dayton’s budget proposes increasing the tax burden on all Minnesotans while repeating the following false statement: “ 95% of Minnesotans will experience no tax increase as a result of Dayton’s budget.“
If the public and media dig into the Governor’s massive tax hike proposal, they will find a total of over $199 million in regressive hidden business tax hikes in fiscal year 2012. Governor Dayton’s regressive tax hikes will burden all Minnesotans through higher prices and smaller payrolls.
These regressive, business tax hikes are publically available on page 5 of the detailed review of the administration’s large tax hike plan.
Governor Dayton proposes corporations help state government collect more tax revenue from their customers, employees, and investors. According to the 2009 Minnesota Tax Incidence Study (p. 29, Table 2-2 and p. 11.) the Minnesota corporate income tax is highly regressive. Increasing tax revenue from this regressive tax is also regressive. Regressive taxes hurt all Minnesotans but place a larger share of the tax burden on lower income households.