The Free Press, Mankato, MN

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July 11, 2013

DFL doesn't understand business, taxes

When reading the DFL response by Rep. Kathy Brynaert and Rep. Clark Johnson to a letter written by Al DeKruif you can see why the DFL just doesn’t get it. They give themselves a pat on the back for an alleged pro-business success when it is more of the same — the government is here to help, with tax and spend nonsense that will not grow small business.

The House and Senate DFL enacted a huge, $2.1 billion tax increase and if you count fees, a $2.9 billion total increase. No one has explained why this increase was necessary when we were only faced with a $627 million short-term deficit (that was shrinking based on projections).

The bill created a new 9.85 percent top income tax rate for joint filers with taxable incomes of $250,000 or greater and single filers with taxable income of $150,000 or greater. As a business owner myself, I can tell you that an increase in taxes and regulations on small businesses directly impacts raises for current employees, and hiring additional employees for expansion.

The DFL also enacted new business-to-business sales taxes on services over the strong objections of the business community. Under the new law, equipment repair of all varieties, including farm equipment, computer/IT repairs, telecommunication repairs and warehousing and storage fees will all be taxed at our current 6.875 percent.

Many businesses will be negatively affected by these provisions and there are also unknown effects from this unneeded extension of the sales tax. It’s insane to believe that this business-to-business tax collection won’t impact the business and ultimately the consumer! The DFL will now force online sales tax collection for the first time as well causing major hassle and expenses to handle for small businesses.

Contrary to the rhetoric, the Internet sales tax puts small businesses in Minnesota at a disadvantage, driving your neighbors small home business out of Minnesota (or out of compliance with Minnesota law, making them criminals). They can’t compete when folks can buy from businesses in states that don’t charge the tax.

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