Minneosta Income Tax Removal

I challenge Democrats - and Republicans - to propose radical income tax cuts or to support the MN Fair Tax (aka MN income tax removal or ITR) as a counter attack to the recent assault on fiscal responsibility, consensus-based policy-making, and purpose-driven policy-making by House File 2800, vetoed last week and over-ridden by the House on February 25, 2008, thus making it law.

Income Tax Removal embraces non-MNChamber small business owners and their children and is in the spirit of the state and federal Fair Tax proposals. Let's review Mr. Jason Lewis' MN Fair Tax introduced in the fall of 2007. The MN Fair Tax abolishes the income tax and phases out the entire MN income tax collection process. All deduction schemes and deduction-based incentives are made irrelevant. To replace the funds a 8.94% sales tax across the board (including, for the first time in MN, food and clothing) is imposed. According to House Research, such a sales tax will adequately replace funds lost by abolishing completely the MN income tax. The downside is large families are hurt because of the many individual items they buy to protect and feed their kids. However the parents' work will counter the effect. Also border-retailers and dealerships are hurt because potential customers will visit the neighboring state for the products they buy. However, 8.94% is not that much more than many states' sales tax and 9 other states share the belief that work should not be taxed.

The sensibilities of the Minnesotan people, having proven resilient in the face of HF2800, would likely survive and our state would be the better for it. MN Income Tax Removal (ITR) would help move working families from welfare to work. Consumption is taxed while Work is held high and encouraged for all MN to benefit from in the form of new products and services, jobs, and apprentice-style education.
As Baby Boomers age, a disturbing trend can perhaps be seen in the regressive HF2800 - the movement to seek job security in government. The ITR is a crucial component to caring for Minnesota's aging population and dealing with the current demographic trends. The ITR will help retain Minnesota's vigorous business climate.

Note that expansion of the sales tax into the internet realm is not what the ITR movement is about.

Winning the HF2800 Transportation Tax battle was critical to the conservative movement. However if Minnesotans are as impervious to radical change as we saw demonstrated yesterday, then why not pursue the MN Fair Tax?

The spectacle of Senator Steve Murphy prowling the House floor cramming HF2800 down our throats should scare you to DEATH! This is a call to ACTION! Let's support the MN ITR!!