Every time I hear the Minnesota Republicans whining about the governors proposal to raise taxes on the wealthiest Minnesotans I get upset – because I took the time to run some numbers on what this tax increase would mean to the wealthiest 2% of Minnesotans and – it’s obscene what the Republicans are fighting for.
The GOP is claiming that the “people spoke” in November and because of that they were not going to raise taxes on the wealthy.
Well, if you believe that crap – you believe this:
“The 89,707 wealthiest tax filing Minnesotans spoke in November
and to hell with the other 2,439,339 taxpayers.”
Here’s the Governors Proposal (page 6)
This one change would increase state tax revenues by $1.890 Billion,
yes Billion dollars.
Tax Returns Normally Filed | # Returns that would have a Tax Increase | Average Tax Increase on their return | |
Less than $75,000 | 1,864,063 | 0 | $0 |
75,000 to $ 99,999 | 265,491 | 2,228 | $1 |
$100,000 to $199,999 | 309,785 | 50,903 | $87 |
$200,000 to $499,999 | 69,150 | 65,173 | $2,720 |
$500,000 or more | 20,557 | 19,974 | $24,801 |
Federal deductibility will reduce average tax change and effective tax increase by about 1/3rd.
These suggestions are for the “Total Tax Increase” – which is an exaggeration of the cuts they would need to make. Why? Because they can deduct this increased portion of state tax from their income on their Federal return – which really reduces the total impact of the tax increase in the last column shown by about one third. So it would even be less for the wealthy in the long run - The first group wouldn't have to give up their one pack of gum a year.
This one change would increase state tax revenues by $1.890 Billion,
yes Billion dollars.
So let’s look at what the GOP is really whining about and what this tax increase would mean to each tax bracket.
For 1,864, 063 tax filers it means they need to cut their spending by
nothing
For 2, 228 tax filers it means they need to cut their spending by
Buying one less pack of gum a year
For 309, 785 tax filers it means they need to cut their spending by
Getting two less manicures a year
For 69,150 tax filers it means they need to cut their spending by
getting a mani/pedi ever ten calendar days instead of every week
getting a haircut and roots touched up every three weeks instead
of every two weeks
every tenth day - don't buy a barista style coffee
buying a lunch, one day a week $3.00 cheaper than you normally spend
cut out one soda a week
downgrading your cable service from 120 channels to 80 channels
downgrading one level on your car wash each time (don't always do the deluxe)
three less dinner and the theater in a year
For 20,557 tax filers it means they need to cut their spending by
Trading in one of their cars every three years instead of every two years
Big whoop-di-doo.
My heart bleeds for the spending cuts they will have to make to survive after they pay more income tax!
This one change would increase state tax revenues by $1.890 Billion, yes Billion dollars.
And if you’re one of those people making over $200,000 and whining because you can’t make ends meet
– go complain to someone else - maybe someone else making over a half a million dollars!
And this is what the GOP is whining about! Manicures for the wealthy!
The GOP could do this tax increase –
it’s called a “compromise” -
but god forbid they should do something like that in today’s political environment.
For the Republicans – it’s my way or the highway and their rich donors are reaping the benefits.
What Republicans are saying to Minnesotans!
“The 89,707 wealthiest tax filing Minnesotans spoke in November
and to hell with the other 2,439,339 taxpayers.”
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