Thursday, February 24, 2005

A Plan To Make Taxes Fairer

Growth And Justice has put together a plan for tax fairness that's winning approval of from Minnesota Democrats AND Republicans. It starts to address the unfairness of the poor paying twice the effective tax rate as the richest Minnesotans.

I encourage you to take 10 minutes and read the plan. It's a breezy and eye opening read. It explodes some of the popular myths held by both the right and the left on taxes.

In short it proposes raising the income tax on those making more than $400,000 in exchange for lowering taxes on businesses. In support of taxing the rich, it points out that high income tax states do just as well economically as low income tax states. In support of lowering taxes on businesses it points out that when business taxes are raised, the burden falls disproportionately on lower-income households through price increases.

The idea was presented to the Minnesota House Tax committee on Wednesday and will be presented to the Senate Tax committee next month. So far, there is no proposed legislation to put this idea into action. If you read the report and like the idea, I'd encourage you to contact your State Representative and Senator and ask them to draft legislation supporting this.

The report also backs up what I've been saying here for the last month, the "No New Tax" cult is forcing the poorest to pay at nearly twice the rate as the rich.


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