Thursday, October 7, 2010

the politics of taxes

Horner's impact on the governor's race continues to intrigue.

Yesterday, a number of former GOP state legislators announced their support for him.  I only hope that a similar initiative is underway with DFL legislators.

More tellingly, Horner was subject to some shots at a GOP fundraiser...that only reinforces that some are worried about his ability to siphon moderates away from the GOP.

How should one react to his proposal to broaden the sales tax?  Is it truly a "tax increase"?  What if, as promised, the sales tax rate is lowered? Then how should it be considered?

The real danger, it seems to me, is that if the sales tax is broadened that any reduction in rate will be short-lived. 

A few years back I was at a Minnesota Chamber dinner event where the Governor actually mentioned the very same idea--broadening the tax but lowering the rate. I was very surprised that this was never reported by the media.  It was clearly a trial balloon on the part of the Governor as the issue came up again a few weeks later and he quickly distanced himself from it.  The feedback must not have been positive.

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