Another great bit of journalism from the Duluth News Tribune on the Mark Dayton sales tax plan and how it would actually affect Minnesota’s economy.
The trucking association, however, is focusing on the fact that — if Dayton’s proposed budget is passed — the 5.5 percent tax would be added every time a product is shipped by truck.
For example, if a truck is hauling lumber, there would be a tax for trucking the raw material out of the woods and to the mill, Hausladen said. It would be taxed again to haul it to a plant. It would be taxed yet again to haul it to the distributor, he said, and finally, it could be taxed if it’s trucked to the person purchasing the lumber to build something.
Why that almost sounds like a Value Added Tax. Problem is, we have the full slate of other taxes.
The point is, this Sales Tax plan of Mark Dayton will devastate the manufacturing industry in Minnesota by ratcheting up the cost of good and services which will lead to less jobs down the road by making Minnesota suppliers less competitive to out of state ones.
Cross-posted at Residual Forces - comments welcome there.