[Winona Online Democracy] This is the best explanation and discussion I have seen on taxes. Thanks for the explanation. Now I know why I feel overtaxed on our business property. Tom Severson
-----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Stephen Hacken Sent: Friday, June 03, 2005 8:25 AM To: WOD Subject: RE: [Winona] John Gunyou's Talk Last Night [Winona Online Democracy] I was at a talk the other day that was given by Dan Salamone, Commissioner of Revenue. He had real concerns about the Senate plan to increase the top tier of income tax to 10 point something percent. He said the top rate in Minnesota is about the highest in the country and increasing it will stifle business. I've been in the tax world for a long time. I have always believed that the best tax system is one that is balanced among the three major types of taxes--income, property and sales. The reason the sales tax is so jumpy in Minnesota is because it is so narrow. Many states tax clothing and similar necessities. It becomes much more stable that way but it also becomes more regressive. I know most people won't believe it but Minnesota actually has pretty reasonable property taxes on houses compared to most states. I don't know the statistics off the top of my head but I know that tax per value on houses in Minnesota are in the lower half of the country. In comparison, Wisconsin has extremely high taxes on houses. The difference is made up by what business property pays in Minnesota. Right now, the state tax that business property pays is more on a parcel that the county, city or school gets. In fact, the state tax makes up over 1/3 of the total property tax paid. On a personal note, I think most of us want government services provided in an efficient and good manner. The problem is that we usually want someone else to pay for those services. Lower income people want more income tax on the higher earners--higher earners want less income tax and more property tax on lower valued properties. The cycle is endless. Just my thoughts for a Friday morning. Stephen I. Hacken Winona County Assessor -----Original Message----- From: Craig Brooks [mailto:[EMAIL PROTECTED] Sent: Friday, June 03, 2005 6:00 AM To: Craig Brooks; WOD Subject: Re: [Winona] John Gunyou's Talk Last Night [Winona Online Democracy] John Gunyou was asked about using income tax more to fund government because it is fairer than other forms of taxation as being based on ability to pay. He explained how property tax is a much more stable funding source because it does not go up and down with the changing economy. I certainly understand the value of a stable funding source. But, what about stability for the tax payer - especially one with a fixed income. Property tax to fund State mandated services such as education and social services causes the system to collect more money as a percent of ability to pay in those geographic areas with the highest need for the government services. We do less for our needest children and low income persons and thus perpetuate the problems. I wish there were ways to stabilize the income and sales tax funding such as adequate 'rainy day' funds and rely less on property tax for state mandated services which, by definition, cost more where the need is greater. When Counties paid more for the welfare benefits in the State there was a statutory provision called Equalization Aid that distributed state money to the areas with the most need and lowest property tax capacities. We not only are seeing cuts caused by legislative gimmicks but also a shift of state resources to the rich suburbs and lowering of any equalization attempts for inner cities and poor rural communities. Craig Brooks <(���)> Craig [EMAIL PROTECTED] _______________________________________________ This message was posted to Winona Online Democracy All messages must be signed by the senders actual name. No commercial solicitations are allowed on this list. 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