The Minnesota Jobs Coalition released this video this morning of DFL state legislators voicing their concern and displeasure with Governor Dayton’s business-to-business sales tax proposal. The audio clips makes it sound like the Governor’s big new revenue source plan is dead on arrival.
If economists don’t like it and tax experts don’t like it and DFL legislators don’t like it, how exactly does Governor Dayton plan on making his idea law?
Rep. Paul Rosenthal (DFL-Edina):
I can only speak for the House and for myself: the Governor’s budget as proposed today would not pass the House, I do not believe.
There’s a couple of big concerns for me and the first one is the business-to-business tax. I think that is going to be something that we discuss a lot and I think its chances of getting through the House are not great. I think it can do a lot of harm to our businesses and we want to make sure that we grow jobs here.
Sen. Melisa Franzen (DFL-Edina):
For me, I do also share Rep. Rosenthal’s concern of the business-to-business sales tax.Just making sure that we are not putting our businesses at a disadvantage.
Rep. Yvonne Selcer (DFL-Minnetonka):
It’s a question that I have around is the tax on services […] I’m really struggling with that tax.
Sen. Terri Bonoff (DFL-Minnetonka):
Yet the Governor included, to my surprise, business-to-business services. So, for example, law firms, accounting firms, advertising firms, public relations firms – that’s a tax I personally don’t support. I think that it’s a hidden tax to consumers.
Sen. Jim Carlson (DFL-Eagan):
The one that I have the biggest problem with is business-to-business taxes.
Again, how does Governor Dayton expect this to become law?