Tag Archives: taxes
Federal Tax Cuts Leave States in a Bind
Posted May 13, 2018
The federal tax overhaul cut taxes for millions of American families and businesses. But the law also had an unintended effect: raising the state-tax bite in nearly every state that has an income tax.
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Business groups have criticized the governor’s proposal, which they argue would make Minnesota less competitive. Some progressive groups say the state should go further, using the extra revenue generated by the federal law to fund a paid family-leave program or childhood savings accounts. “This is exactly the kind of thing you could use to start the core investment of a program like that,” said Chris Conry, strategic campaigns director for TakeAction Minnesota, a liberal advocacy group. “You could give every kid born in Minnesota $500 at birth.”
Chris Conry, As New Taxes Begin; Old Theories Must End
Posted July 19, 2013
July 1st was the date that much of the Minnesota’s 2014-15 tax plan began to be enacted. This includes the new tobacco taxes, the corporate loophole closings, and, of course, the increased income tax on the top 2%. As we pass this milestone, expect critics to make their complaints known. At this point their threats are pretty familiar: taxes force the rich to move out of state and take their jobs with them.
Nowhere was this refrain more tired than in the debate over corporate taxes. For example, this year, the Legislature and Governor faced relentless lobbying from no fewer than four business associations that wanted to preserve a jumbo-sized tax loophole known as the Foreign Royalty Subtraction. This loophole, in essence, created an in-state tax haven for intellectual property. The theory was: if Minnesota shelters certain royalty payments for intellectual property, businesses will create more jobs, and not just any jobs, but high-paying, high-tech jobs in research and development.
As it turns out, this tired theory of taxes was no truer here than it has been in Ireland, Bermuda, or Vanuatu. During the final days of the recent Conference Committee on Taxes, non-partisan staff from the Department of Revenue explained that only three of the top twenty corporations that claimed the Foreign Royalty Subtraction actually had R & D operations in Minnesota. … Continue reading »
Minnesota’s tax plan: It’s not overreach; it’s overdue
Posted June 5, 2013
“That is the task which we begin today: to inaugurate an age in which our will is equal to our hopes. I believe that our people are waiting, and are ready, for such an age. They are waiting for government to catch up with them.” – Gov. Wendell R. Anderson, Inaugural Address, January 6, 1971
Changing our tax code is a long-run project, and it’s controversial every step of the way. There’s a good reason for that: We negotiate and renegotiate our social contract through taxes. It’s where we sort out who pays and how much and for what. Everybody has a stake and everybody has an opinion. The tax changes coming in Minnesota’s next biennium are no exception.
Chris Conry, Our Tax Plan: It’s Not Overreach, It’s Overdue
Posted May 24, 2013
“That is the task which we begin today: to inaugurate an age in which our will is equal to our hopes. I believe that our people are waiting, and are ready, for such an age. They are waiting for government to catch up with them.” – Governor Wendell R. Anderson, Inaugural Address, January 6, 1971
Changing our tax code is a long run project and it’s controversial every step of the way. There’s a good reason for that: we negotiate and renegotiate our social contract through taxes. It’s where we sort out who pays and how much and for what. Everybody has a stake and everybody has an opinion. The tax changes coming in the next biennium are no exception.
First, what happened? In a nutshell, we, as a state, did five things: 1) we raised $1.1 billion by asking the top 2% to pay 2% more, 2) we closed over $400 million in corporate tax loopholes, 3) we raised another $400 million in tobacco taxes, 4) we raised taxes nearly $100 million on large inheritances, and 5) we did a mini-version of sales tax reform: taxing digital goods and a handful of business services while lowering other taxes.
These are significant changes, but none of them are unprecedented. … Continue reading »
Elizabeth Lienesch, Fixing the sharing problem
Posted April 17, 2013
I recently attended a superhero themed birthday party for a 3 year old. Imagine dozens of kids in capes, masks, and tights of all colors. Yes, it was a cute as it sounds. During this party, as cake was doled out and presents were opened, I watched parent after parent explain the concept of sharing to their kids. At one point, I overheard a parent say to their 3 year old, “we share so that everyone can have a good time.”
It’s time for corporations in our state to learn this lesson of sharing. For too long, corporations have failed to pay their fair share, and have instead been taking advantage of every opportunity they can to keep more and more money for themselves.
Let’s look at the real life examples of this in our state. We have corporations like Verizon paying 0% state income tax. We have companies like Wells Fargo using tax loopholes to stash money tax-free in Cayman Island shell companies. And we are just recently learning more about the millions of dollars in excess reserves that the four biggest HMOs in Minnesota are sitting on. That’s money that they’ve made from running our public health care programs that isn’t being spent on care.… Continue reading »
Advocates push to close corporate tax loopholes in Minnesota
Posted April 2, 2013
Advocates are pressing Minnesota legislators to close tax loopholes and prevent companies from shifting income to offshore subsidiaries to avoid paying taxes.
TakeAction Minnesota says that companies are avoiding paying millions in taxes, which either results in service reductions around the state or higher taxes for all Minnesotans.
“Minnesota families cannot continue to pay for corporate tax avoidance,” said Greta Bergstrom, spokeswoman for Take Action Minnesota, an advocacy group.
Legislators are exploring a proposal to close some tax loopholes, which would bring in an additional $36.5 million over the next two years. If legislators closed all tax loopholes, the state could potentially take in an additional $350 million.
