We have a tax system that was created in the 1960s and 70s for an economy that was built on manufacturing and agriculture for a population of young families in their high spending years. That’s not Minnesota today. Tax increases alone aren’t the answer. That just locks into place a tax system that is unfair, unproductive and unaccountable. We need tax reform – the kind of economic reforms that will generate more investments (especially early, “angel” investments) in the businesses of the future. Stop taxing away good jobs. We have to remove the disincentives that stop businesses from growing and creating new jobs. And, we need to clear the barriers that discourage existing Minnesota companies from growing in their back yard.

Here’s what the debate over raising the top rate of income taxes misses– Most of the burden falls not on the wealthiest Minnesotans, but on two-earner families (Dayton’s proposal, according to Dept of Revenue, would nearly double the top rate on households earning $120,000 or more) and small business owners. The wealthiest Minnesotans have their shelters to avoid much of the burden. We need to look at the sales tax, but will carefully examine what is most appropriate for Minnesota Minnesota’s tax system should be built on two principles: it should be fair and it should raise only the revenue needed. Governments that start with a call for tax increases will end up with higher taxes, not necessarily good policy. Good policy – fairness, job growth, investments in the future – should shape Minnesota’s tax system.  Increasing the state’s income tax rates is not the right way to go.

If more revenue is needed, Minnesota should look at expanding the sales tax (making sure there is protection for low-income people) and streamlining tax expenditures – the tax deductions, credits and special advantages that are very expensive and often treat middle-income Minnesotans unfairly.

Minnesota’s tax system should be built on two principles: it should be fair and it should raise only the revenue needed. Too often these days, we hear the call from some candidates that we need to raise taxes. Minnesotans know that if the promise is to raise taxes, we will get higher taxes. That doesn’t mean we will get better tax policy, though.

We need transparency. The state can’t keep hiding its poor decisions by forcing schools and local governments to keep raising property taxes.

Minnesota faces a deficit in the next biennium that is projected to be as high as 20 percent of the state’s operating budget. Candidates who promise to solve that shortfall exclusively through spending cuts either aren’t being honest or they think we will accept a state with roads that continue to deteriorate, schools that aren’t preparing our children for the future and employers that create new jobs in other states or countries.