Did you know the poorest Minnesotans have a tax rate three times higher than the richest? Hear Rep. Ann
Lenczewski's far-reaching proposals that would restore fairness and stability to Minnesota's
tax system.
Sunday, November 8
2:30-4:00 PM
St. Louis Park City Hall, 3rd Floor - map
Followed by Q and A moderated by Dane Smith, President, Growth and Justice.
Light refreshments will be served.
BACKGROUND -- House Republican Representative Pat Garafalo accused House members voting for the 2009 legislative tax package of riding "shotgun on the Pogiemobile." He was wrong. The surprise compromise tax omnibus bill was really the brainchild of House Taxes Committee Chair Ann Lenczewski.
Representative Lenczewski has been particularly concerned about the fairness of Minnesota's taxes. Currently Minnesota property taxes are extremely regressive - households in the top 1 percent pay only 0.7 percent of income in residential property taxes, while those who earn just below the median income pay about 3.5 percent of their income in property taxes, a whopping 5 times more.
Overall effective tax rates for Minnesotans aren't much better. On average, Minnesotans paid 11.4% of their income in taxes. However, the top 1% of Minnesotans had a much lower effective tax rate of 8.8%, while the poorest ten percent of Minnesotans paid nearly three times as much, 22.1% (2009 Minnesota Tax Incidence Study).
At the same time as tax unfairness has risen, cuts in health and education benefits due to Pawlenty's veto of the tax bill and subsequent unallotments have hurt Minnesotans with the lowest incomes the most. Speaking on the omnibus tax bill, Representative Lenczewski stated,
"for shared sacrifice, the lower-income and middle-class people are getting cuts, and wealthier Minnesotans should have to contribute, too. So we're going to cut away some of the stuff they're getting that is, relative to Minnesota tax incidence, very unfair. We really can't afford to subsidize these tax expenditures anymore."
For more background on Rep. Lenczewski, read this interview on her proposal to raise revenue by making Minnesota's taxes more progressive in the 2009 session.
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