Sales tax repeal should extend to all businesses
In September, the governor may call a special session to address the disaster zones in Minnesota. The Governor has also indicated he would like to repeal a sales tax he signed into law on labor for farm equipment repairs.
I would be in favor of a repeal of that tax. However, it should be extended to all the business-to-business taxes. Minnesota has been experiencing a mild recovery. Thanks to the efforts of the Republican-led Legislature in 2011 and 2012, a $5 billion deficit was turned into a $3 billion surplus — enough to replenish the state reserve fund and pay back much of the school shift. Unemployment was reduced from over 7 percent to 5.1 percent. This resulted in over $450 million above forecasted revenue to our state.
The newly passed taxes went into effect July 1. The initial result is $20 million less than forecasted revenue for the month of July. Forcing businesses to pay tax for repairs will drive up consumer costs and leave hardworking Minnesotans with less. People are shopping in bordering states. If we do not correct this I anticipate budget shortfalls and more billion dollar deficits.
At a time when we should be looking at reducing spending, the current legislature increased spending by over $2 billion. Your governor and legislators need to hear from you. Don’t forget you are the boss. We work for you. — State Rep. Steve Green (R-Fosston), Minnesota House District 2B