David Brauer wrote:
Sales-tax referenda may seem great now, but I'd argue they no longer make sense and deny us an alternative to the property tax.
I agree 100% with this. Great analysis by David.
Sales and property taxes are both regressive, but property taxes are much, much more so. Contrary to intuition, adding clothing to the sales tax actually makes it _less_ regressive.
As you all know, I'm fighting for a metro sales tax to give Metro Transit the stable, dedicated budget it needs. The sales tax is the only realistic way to do it given the political climate David described. A sales tax is much less regressive than a fare hike.
And the effective income tax (federal + state) is quite regressive. The DFL tax plann doesn't even bring the top income brackets up to even with the rest of us.
It's not a matter of regressive or not, it's a matter of degree.
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