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

Gov. Mark Dayton on Tuesday unveiled a proposed state budget and tax plan that would, among other things, .

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.”


Gov. Dayton's Budget Proposal Draws Mixed Reaction

“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.

yomammy January 24, 2013 at 01:37 PM
Look local anyway!!!! There are some local spots that could really use our business- there are clothes stores downtown and at the plaza that would beg for your business. They may be somewhat limited compared to MOA, but go have a look!!! They are nice and close!! (the money you save on taxes on clothes in MN is lost on gas anyway...)
Mike Hammer January 24, 2013 at 02:08 PM
If it's true about removing the cap on the wheel tax, raising the gas tax, adding a .5% tax to the metro area and adding sales tax to more items I guess I am not seeing the glorious tax cut for middle class. The working poor will be hit even harder. I am surprised they haven't started taxing emergency surgery and medicine.
Chadwick January 24, 2013 at 02:12 PM
Thanks Dayton, you make Wisconsin more appealing every day.
yomammy January 24, 2013 at 03:23 PM
medicine, and medical devices are already now heavily taxed under your presidents obama care....I dont see how taxing medical stuff "saves" us money....
Chadwick January 24, 2013 at 03:34 PM
I have friends who work for Medtronic and Boston Scientific. Just wait til you see the layoffs that will happen over the next few years. Democrats think you can just tax everything and there will be no ramifications. Well unfortunately that doesn't work in the real world. Just ask California in a couple years how there increase in income tax is working out?
yomammy January 24, 2013 at 04:47 PM
yep- so the .gov taxs medical devices X%. guess how much that device just went up in price to the patient/consumer....stupid stupid stupid. But its OK...obamcare makes it free...
Captain Midnight January 24, 2013 at 05:25 PM
Chadwick, maybe if you turned of FAUX NOISE and paid attention to the "real world" you might find out some genuine facts. http://www.csmonitor.com/USA/Politics/2013/0123/Jerry-Brown-s-second-act-With-California-budget-balanced-what-now The budget has been balanced and California is moving ahead with high speed rail links (thanks in part to Walker and his 19th century mind) and new water infrastructure. The people of CA voted for the tax increase to make up for the damage the TEAPublican had done to the state.
mainstreet January 24, 2013 at 05:33 PM
I guess that deficit in the states pension fund is fixed too......................???? HA HA balanced my eye.
Chadwick January 24, 2013 at 05:34 PM
This is why no one can take you seriously. Did I even mention California's budget? As even stated in your article, there are experts that don't believe the budget is balanced, but anyways what I was referring to is the number of "rich" people who have left or are planning to leave California because of the tax increase that was voted for and they were already losing people in this category before the last tax increase. Tiger Woods already stated that he left for Florida because of the taxes. Here are some more articles on the subject so that you can educate yourself so you don't look so silly. http://economy.blog.ocregister.com/2009/02/06/are-the-rich-fleeing-california/ http://www.realclearpolitics.com/2013/01/01/california_dreamin039_gives_way_to_fiscal_reality_298872.html
Captain Midnight January 25, 2013 at 08:05 AM
I'm impressed with your "sources". A blog from the Washington Times, which is the "Moonie" paper and a blog from Orange County, which doesn't mention how many of California's 38 million people are leaving. The article from a real newspaper, the Christian Science Monitor, states that it is the budget deficit which is being eliminated, as the taxpayers of CA voted to raise their taxex to pay for the services that they want. It did not talk about the retirment programs, etc. And yes, WI looks so much better than MN which is why MN is gaining new jobs at a faster rate than Walker's "Open for Business" scheme has managed to come up with.
Chadwick January 26, 2013 at 01:52 PM
Seriously it's hard to even respond to you. You bash anything that doesn't agree with you without any actual reasons, and praise the Christian Science Monitor which if I had used I'm sure you would say the same thing about. Dayton's plan to increase taxes hasn't even happened yet so how could it affect job gains already? Jeez, you need to slow down and do some critical thinking before you write some of these posts.
Tom of Stillwater January 26, 2013 at 03:42 PM
I'm confused about the tone of the article since the people it surveyed tend to say they will still shop in Minnesota. Sounds like a winner for MN.
Shawn Hogendorf January 26, 2013 at 06:25 PM
It's not my opinion, Tom, so that may be where you get confused on the tone. A few representatives have said this proposal would benefit people from Wisconsin, so I reported that, and then I asked a sampling of people from Wisconsin what they think and posted their responses ... therefore the contrast.
yomammy January 28, 2013 at 03:21 PM
Dayton had this to say: heurblg gurble urblr gerble...
Bryan Ring January 31, 2013 at 04:03 PM
Okay maybe I am way off base here, but I will take a shot at it. Owner of a lawn care company in Stillwater, I am one of nine service industries required to collect sales tax. Every single season is a battle keeping up with all the laws, cost of living, etc. that consistently change! As a business owner my focus is on: Customer retention, Insurance, Budget, Employees, DOT Regulations, Estimating, Equipment, Fuel Prices, etc. Sales tax is already being paid on all Vehicles, Tab Registrations, Trailers, New Equipment Purchases blah blah blah! Yes I am a little bitter with my State Government. It just never seems I can put a couple bucks away! Just wanted people who "May" not be aware that I was not formally hired by the State of Minnesota to find customers so I could charge them sales tax, meanwhile adjusting my prices to make an actual profit. I have not been paid by the State of Minnesota for the tedious task of collecting "Sales Tax" from my customers. The JFK famous quote just struck me while writing this reply. Since that quote is over 50 years old, so to is our State, Country and World. It seems we have changed as a people, greed seems to be more of an occurrence. I have an up to date version of this quote, with a minor change to it: "Ask Not What I can Do For Minnesota, but Rather What Can Minnesota Do For Me". Because I and surely many others of this great state, already have done their fair share!


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