John Spry: The worst tax proposal in ...

John Spry: The worst tax proposal in Minnesota

There are 9 comments on the TwinCities.com story from Oct 27, 2010, titled John Spry: The worst tax proposal in Minnesota. In it, TwinCities.com reports that:

Tax the poor some more. That is exactly what one of Mark Dayton's tax hike proposals will do.

Join the discussion below, or Read more at TwinCities.com.

“Unborn babies are people too”

Since: Jul 09

Minneapolis, MN

#1 Oct 28, 2010
In the category "Worst Tax Proposal," the winner is:

Who else but a Democrat? Mark Dayton, naturally.

"...Twenty percent of the new tax would be paid by Minnesota families with the lowest 10 percent of income. Thirty-seven percent of the tax would be paid by families with the lowest 20 percent of income. The surtax obviously places a disproportionate tax burden on the poor.

"In contrast, the families with the highest 20 percent of income would pay less than 1 percent of the proposed surtax on consumer loans. It is not logical to say "tax the rich" while proposing a tax that burdens low-income families struggling with debt.

"This is the worst tax proposal I have seen in my career as an economist. It breaks almost every principle of good taxation. This tax on loans would create disproportionate economic costs for the people of Minnesota compared to other proposals to raise additional revenue."
RightOn

Saint Paul, MN

#2 Oct 28, 2010
Lux et Veritas wrote:
In the category "Worst Tax Proposal," the winner is:
Who else but a Democrat? Mark Dayton, naturally.
"...Twenty percent of the new tax would be paid by Minnesota families with the lowest 10 percent of income. Thirty-seven percent of the tax would be paid by families with the lowest 20 percent of income. The surtax obviously places a disproportionate tax burden on the poor.
"In contrast, the families with the highest 20 percent of income would pay less than 1 percent of the proposed surtax on consumer loans. It is not logical to say "tax the rich" while proposing a tax that burdens low-income families struggling with debt.
"This is the worst tax proposal I have seen in my career as an economist. It breaks almost every principle of good taxation. This tax on loans would create disproportionate economic costs for the people of Minnesota compared to other proposals to raise additional revenue."
WannaFightAboutIt?
Mike

Marshfield, WI

#3 Oct 28, 2010
Remember this people!! Please do not vote for this already proven failure Mark Dayton

“I am always right.”

Since: Oct 09

Former MN Taxpayer

#4 Oct 28, 2010
Spry's mind is not very spry.

If he understood the intent of Mr. Dayton's proposal, he would know that the tax is not to go on the consumer - but instead it is to be on the crooked lender. This way we can keep all of the predatory lenders out of our state.

It is a great idea by Mr. Dayton, and will be one that is appreciated by all consumers in Minnesota.
jw in the grove

Saint Paul, MN

#5 Oct 28, 2010
IrishMN wrote:
Spry's mind is not very spry.
If he understood the intent of Mr. Dayton's proposal, he would know that the tax is not to go on the consumer - but instead it is to be on the crooked lender. This way we can keep all of the predatory lenders out of our state.
It is a great idea by Mr. Dayton, and will be one that is appreciated by all consumers in Minnesota.
yes we all know additional expenses are never handed down to the consumer,
Joe Hanson

Minneapolis, MN

#6 Oct 29, 2010
The biggest hidden TAX is the one that Dayton will propose to fill the billion dollar plus gap in his proposed budget plan.

Why doesn't Pat Kessler do a "Reality Check" on that!
J Courier

Minneapolis, MN

#7 Oct 29, 2010
IrishMN wrote:
Spry's mind is not very spry.
If he understood the intent of Mr. Dayton's proposal, he would know that the tax is not to go on the consumer - but instead it is to be on the crooked lender. This way we can keep all of the predatory lenders out of our state.
It is a great idea by Mr. Dayton, and will be one that is appreciated by all consumers in Minnesota.
Utopians judge by intent; some of us are grounded enough to judge by effect. How much less pressure would there be on anyone to perform if intentions were the only criteria that could be used to evaluate performance?
Charlie

Minneapolis, MN

#8 Oct 31, 2010
Prof. Spry does not explain how a surtax works. He claims the result will inevitably be higher interest rates for Minnesota consumers, particularly those with lower credit ratings who don't qualify for cheaper credit.

Sounds really populist to fight the tax, right?

But what happens? A company charges 18% interest. It's hit with a 30% tax on income attributable to the 3% above 15%. How does the card company pass on this tax to consumers? It has to raise its interest rate to 21%, say. But then it has to pay a surtax on the interest income it jacked up to pay the previous tax.

At some point, the surtax will force the gouging company to find ways to lower its expenses — oh, like government is supposed to do instead of raising taxes — or it will drive consumers to cards with more competitive rates.
Fortuna

London, UK

#9 Mar 26, 2014
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