Minnesota Senate fights over clothing tax

Categories: Legislature

Skoe-Dayton.jpg
Taxes Committee Chair Rod Skoe says the tax plan could help wipeout the state's deficit; Dayton won't support any hike on middle- or lower-income families.
The DFL-controlled Senate will take up its $1.9 billion tax plan this afternoon in what we expect will be a grueling debate that could last well into the evening.

Among the most contentious proposals: repealing the state's tax exemption on clothing.

If passed, the move could raise about $541 million in additional revenue, which would help curb the state's deficit. But eliminating the tax-free incentive won't come easy. Even if the Senate does approve the repeal, the House bill doesn't include it, and Gov. Mark Dayton says he wouldn't support any tax that would hurt middle- or low-income families, according to the Star Tribune.

The Senate's proposed changes to the sales tax system would also hit things like haircuts, tattoos, and car repair, while lowering the overall sales tax rate to 6 percent from 6.875 percent. Under the proposal, smokers could see a pack of cigarettes go up 94 cents, Politics in Minnesota reports.

One thing all Democrats in Minnesota seem to agree on: raising income taxes on the state's top earners. The Senate plan would raise state income tax on Minnesota's top 6 percent earners from 7.85 percent to 9.4 percent.

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11 comments
keny1
keny1

Why don't we tax welfare Whores? After all, they are getting free money for doing nothing other than spreading their legs. Instead of giving them more free money every time they shit out a Welfare baby, maybe we should just reduce their EBT to encourage them not to shit out any more welfare babies. Sounds like a good plan to me. 

senatortombstone
senatortombstone

The government should not punish Minnesotans, just because it can't keep its finances in order. No sales taxes on clothing, or anything else. Repeal the sale's tax to 0.0%.

Isabel Chanslor
Isabel Chanslor

Luxury items yes. Under 300 for one piece no tax. One piece more than that tax away.

Theresa Bruckner
Theresa Bruckner

I would probably be okay with a tax on luxury clothing items--if the item costs over X amount, there's some tax on it. I believe New York (or maybe just NYC) does something similar. That way you're not penalizing people for buying the basic clothes they need to survive, but you are taxing purchases beyond the basics, if that makes sense. You probably don't need a $500 pair of shoes to survive, so taxing that, I'd be okay with.

Elisabeth Morley
Elisabeth Morley

Lots of states have sales tax on clothing, so MN has used that as a tourist draw for many years. However it makes more sense to have a small tax on clothing as opposed to car repair, which would more negatively affect middle or low income families. If I have to wait to buy a new shirt that's not as big of a deal as not being able to afford to fix my car.

Candi Olson
Candi Olson

yes, tourists at the moa could fund a new moa.

Andrea Blalock
Andrea Blalock

MN needs to cut spending and stop taxing everything. I vote NAY on any new taxes.

Onan
Onan

@Andrea Blalock What would you like to see cut?

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