Weak Governor Opposes Tax Repeal

Appearing weaker by the day, Gov. Dayton is publically opposing the repeal of the warehousing services tax increase:

Dayton has said a repeal of the warehousing tax can wait until the 2014 session, because it doesn’t take effect until next April.

That’s a feeble argument. ‘It can wait because it won’t hurt businesses until April’ isn’t compelling, especially considering this information:


Dayton wants to call lawmakers back to St. Paul on Sept. 9 to approve disaster relief for 18 counties hit hard by storms in June. He said yesterday he also wants the special session to exempt farm equipment from a new tax on business equipment repair.

I’m fine with them not repealing the warehouse tax until next winter. The tax increase will be repealed. While it’s still on the books, though, it’s a constant reminder that Gov. Dayton’s and the Democrats’ highest priority is to raise taxes regardless of whether it hurts Minnesota’s economy.

Dayton and the Democrats that control the legislature worry more about raising taxes than they care about strengthening Minnesota’s economy. Cargill shipped 200 high-paying union jobs to Colorado. Red Wing Shoes is seriously considering building a $20,000,000 warehouse in Wisconsin as a direct result of Gov. Dayton’s warehouse tax.

It’s shocking that a governor would oppose repealing a tax that’s threatening to move dozens of jobs to Wisconsin on the basis that the tax won’t hurt a major employer until next April.

Chamber President David Olson’s letter asks for a repeal of the entire tax on business equipment repair, along with new taxes on warehousing services and equipment purchases by telecommunication providers. He said the taxes are hurting business and job growth.

“Business must plan ahead and these new taxes are already impacting their decisions,” Olson wrote. “We are aware of situations where expansion plans are now on hold or where companies are considering relocating some or all of their operations to other states.”

“Companies are considering relocating…operations to other states” is code for Red Wing Shoes, though it might include other companies, too.

Since gaining total control of the legislature, Democrats have weakened Minnesota’s economy with their foolish, counterproductive tax increases. They’ve put businesses in their crosshairs. They’ve paid off their special interest allies with illegal legislation that hurts Minnesota’s poorest families.

The Democratic Party in Minnesota is nothing if not finely attuned to their special interest allies. That’s why repealing foolish, counterproductive taxes isn’t their priority. That’s why we can’t afford another 2 years of their policies.

Comments welcome at Let Freedom Ring.