Is Gov. Dayton's Tax Plan 'A Budget for a Better Wisconsin'?
Rep. Kathy Lohmer (R-Stillwater) says Gov. Mark Dayton's proposed budget and tax plan will hurt the middle class and local businesses. “It’s just a bad bill," Lohmer said. "We're in the minority, but I really hope we can stop some of these things.”
Gov. Mark Dayton on Tuesday unveiled a proposed state budget and tax plan that would, among other things, lower Minnesota's sales tax, but broaden it to cover more items such as higher-priced clothing, car repairs and other services.
Well, the governor’s plan was not well received by Minnesota GOPers, or as MinnPost put it: “The Republican response to Governor Dayton’s budget proposal approximated the outdoor temperatures this week.”
“The governor’s budget proposal raises taxes on all Minnesotans,” Sen. Karin Housley (R-St. Mary's Point) said on Tuesday.“Everyone – not just the rich – will pay more to grow government.”
Minnesotans will feel the burden of new taxes on auto services, over-the-counter drugs, health club memberships and clothing items priced over $100, Housley said.
Rep. Kathy Lohmer (R-Stillwater) agreed, and took it one step further.
“This proposal is really bad for business, Minnesota jobs and the middle class,” Lohmer said. “I agree with what Rep. Kurt Daudt said: ‘This budget is for a better Wisconsin.’”
Wisconsin residents cross the border every day to shop in Minnesota, in large part because there is no sales tax on clothing, Lohmer said. While they’re out and about, Wisconsin shoppers spend money at restaurants and other local businesses.
Extending taxes to things such as clothing will really make people from other states ask themselves if it’s worth it to shop in Minnesota, or if it makes more sense to spend their dollars locally.
“I think it will really, really hurt businesses in my district to increase these taxes,” Lohmer said. “It’s just a bad bill. We're in the minority, but I really hope we can stop some of these things.”
On Facebook, we asked Hudson Patch users: Do you come across the border to shop for clothing? If Minnesota starts taxing clothing, would you still make the trip, or do more shopping locally?
Here’s a sampling of what they had to say:
Mark Kongshaug: It's silly to spend $10 in gas to save $1.22 in sales tax. I shop in Hudson.
Teri Larsen: It does make a difference when I'm buying something I could get on this side of the river...but, I shop for clothing more often in MN simply because there is more selection over there.
Giovanni J San Filippo: I would still shop in Woodbury.
Karen Addison-Jubie: Still make the trip!
Tim Congdon: Oakwood Mall in Eau Claire isn't a lot further than, for example, Southdale or Burnsville...so I'd keep it in our state all purge things being equal. Plus I'd rather support Scheel's than Dick's. Quick day-to-day shopping probably wouldn't change though ~
Ashley Miranda Morgan: There is really not a lot of places in Hudson that sell clothes I like at a halfway decent price, either way I'll still have to make the trip..
Sharon Chartraw Vlasak: Shop online.
Christopher Gagne: I enjoy Kohls, Gordmans, and Old Navy. We do shop locally, like at Shopko, Target. So I would probably still shop in MN some, as the tax isn't really what I look for. Unfortunately some of the clothes & goods I look for are usually at the stores in Minnesota. If local stores sold the clothes & goods I buy in MN, I would most certianly buy them here in WI.
Kim Joyce: I would do more local shopping but on occasion I would cross the border - from River Falls
Anna Schweitzer: It doesn't matter to me, I do buy local most of the time anyway. Mostly I plan trips to the cities so no biggy.
Karine Maynard: Would the Mall of America get so much attention, if MN starting charging sales tax on clothes? Would Woodbury exist if the playing field was even MN/WI? And then what's next, anyway? Will MN start selling booze on Sundays? Ha!
Will the propsed tax extensions change the way you shop? Do you think it will hurt local business? Share your thoughts in the comment section below.