Dayton open to new tax plan? Good!
Gov. Mark Dayton had some surprising things to say at his State of the State speech on Wednesday. None, perhaps, was more surprising than his startling new economic theory that tax cuts are bad for the economy.
He should try telling that to business owners as they look over the books at the end of the year, hoping to see that they have enough profit to keep going, maybe invest in some new equipment or hire a couple more people. We doubt that too many of them are saying, “Darn, if only my tax bill was bigger…”
Dayton has proposed a budget and tax reform plan that will hit businesses especially hard, if the state were to extend the sales tax to business-to-business services like legal fees, accounting fees, advertising and such. Businesses will certainly pass the new tax cost on to their customers, which will make them less competitive with businesses in other states. Some may even move to other states.
Dayton did say he was open to better ideas for tax reformation. Good. There have to be some better ones out there, some that won’t drain businesses and stifle job creation. It is up to legislators to develop and propose those better ideas in this legislative session.