For months, we’ve heard the DFL, from Gov. Dayton and Speaker Thissen to DFL legislators, talk about taxing the rich because they hadn’t paid “their fair share” to support the DFL’s warped vision of government. Thanks to information included in Rep. Zach Dorholt’s e-letter update, we’ve got verification that the DFL just passed a massive tax increase on the middle class. Unfortunately, it’s mostly focused on small businesses. Here’s part of who’s getting victimized with the DFL’s middle class sales tax increases:
Commercial Equipment Repair:
Repairing and maintain electronic and precision equipment only if the service can be deducted as a business expense. Effective for sales made after June 30, 2013
TAXED if deducted as a business expense (purchased by a business), repair of the following items:
- cell phones, iPads, and similar devices
- computers, and everything that attaches to them like printers, monitors, and storage devices
- office equipment like photo copiers, scanners, and fax machines, CAD machines
- televisions, video and digital recorders and players
- communications equipment like two way radios, land line phones, and satellite dishes
- radar and sonar equipment
- medical and scientific equipment like microscopes, x-ray machines, etc.
Here’s another victim of the sales tax increase:
Commercial and Industrial Machinery and Equipment
Labor to repair or maintain commercial and industrial machinery and equipment is taxable, even when the equipment is installed into real property. This includes:
- refrigerators and freezers
- Farm machinery used in agricultural production (Note: The repair or maintenance is not taxable if farm machinery is owned for personal use.)
- Logging equipment
- Manufacturing and production equipment
- Mechanical cleaning equipment (floor sweepers, washers/scrubbers, etc.)
- Mining equipment
- Other heavy machinery (front end loaders, cranes, bulldozers, back hoes, skid steers, forklifts, etc.)
- Restaurant equipment
- Truck scales (portable and real property)
The DFL’s sales tax increases will hit tons of mom-and-pop shops. Repairing logging equipment will now get hit with the DFL’s sales tax increase. That hits the middle class hard. Tons of these loggers are small businesspeople making $35,000-$50,000. They aren’t rich by anyone’s definition. Repairs of cell phones, iPads, computers, and printers will now be taxed. How many people will get hit with that DFL tax increase? Perhaps hundreds of thousands? Certainly tens of thousands will get hit, with only a tiny percentage of them being “the rich.”
Unfortunately, the DFL’s victimization of Minnesotans doesn’t stop there. Here’s another group of people getting hit
with the DFL’s middle class tax increase:
Examples of taxable electronic and precision equipment repair and maintenance:
- Power tools and shop equipment
- Computer equipment
- Office security system
- Sprinkler system in a production building
The DFL’s tax increases hit every income group in the state. Everyone will get hit with the DFL’s tax increases. What’s worst is that the DFL’s tax increase is paying off the DFL’s special interest allies while giving the average Minnesotan less effective government, especially less effective schools.
Think about this: the DFL raised taxes on everyone while repealing the Basic Skills Test for teachers. That isn’t just a bad deal for Minnesotans financially. It’s a terrible shafting of students who need high quality teachers so they can compete with people in other states and around the world.
What’s pathetic is that Gov. Dayton signed the DFL middle class tax increase into law at the same time he signed the repeal of the Basic Skills Test. What’s most pathetic is that Gov. Dayton signed the DFL middle class tax increase into law at the same time he signed the repeal of the Basic Skills Test requirement that he’d signed into law in 2011.
Does Gov. Dayton do whatever the DFL’s special interest supporters tell him to do? That’s what it looks like. There certainly isn’t proof that he’s ever stood up to the DFL’s special interest supporters. We certainly don’t need a governor who resembles a potted plant. We need a governor who thinks things through and acts in the best interest of all Minnesotans, not just the DFL’s special interest supporters.
Finally, St. Cloud needs a legislator who’s willing to tell his party’s leadership he won’t vote for legislation that hurts middle class families. St. Cloud needs a legislator who doesn’t vote according to the DFL’s special interest supporters’ wishes.