To the Editor:
We’ve all heard it. “Job creators need tax breaks.” My opponent says it on her website. But is it true?
As an attorney, I know something about taxes. As President of the Milaca Chamber of Commerce, I know something about what local businesses need to create jobs.
The wealthiest Minnesotans pay the lowest total tax rate of any group in the state when you include sales, property and income taxes. They pay about 2 percent less than the entire middle class. And the more money you make, the lower your total tax rate goes. This is from the Department of Revenue. They collect the taxes. They should know.
But do the rich create jobs? Not with personal income they don’t. Businesses create jobs. Good business owners use increasing revenue to reinvest in their business. They buy more or better equipment. They hire more people to serve more customers. When they do, they are not taxed on this revenue because it’s not income. It’s a business expense. Higher income taxes over, say, $250,000 would encourage local business owners to reinvest any money above that amount back into their business and local community. That way they won’t get taxed. And we will create jobs.
Those calling the wealthiest Minnesotans “job creators” are not telling the truth. The Bible tells us that love of money is the root of all kinds of evil and causes us to be pierced by many sorrows (1 Timothy 6:10). Last year, Republican legislators pierced us all by shutting Minnesota down to protect those making more than $1 million per year, raising property taxes statewide $370 million, &and borrowing $2.4 billion from our schools.
We need property tax relief and a lower tax rate for the middle class. That will create more customers —more people who can afford to fix their car or remodel their home. And more customers shopping at local businesses will create more jobs.
Joe Walsh, DFL candidate for State Representative, District 15A