Plymouth State Rep on Snack Tax, Daycare Unionization and Dayton's 'Tax and Spend'

by State Representative Sarah Anderson

Taxing snacks, unionizing privately owned daycare providers, and creating a health insurance exchange were the legislative priorities of the Democrat-controlled legislature this week.  Below are details on these bills and the Governor's new tax and spending plan.

Brown Bag Lunch Tax: 

This week Democrat Representative Jerry Newton (Coon Rapids) presented his bill on taxing snacks in the House Tax Committee.  Much like when Governor Dayton proposed taxing lunch meats, this snack tax bill opens the door to taxing food overall in Minnesota—something I oppose. 

Under Newton's proposal, families would pay taxes on nuts, seeds, popcorn, pretzels, chips, cookies, ice cream novelties and so on.  Even those 100 calorie bags of snacks would be taxed.  

In addition to adding to a family's financial burden, the snack tax would hurt Minnesota businesses who make these products.  Companies like General Mills (they make Gardetto's snack mixes), Barrel O' Fun out of Perham, Brown's Ice Cream in Minneapolis, Gurley's in Willmar, and Schwan's in Marshall would all be negatively impacted by this snack tax.

Lastly, the tax would generate $6 million in revenue but because it violates the multi-state Streamline Sales and Use Tax agreement, we would be fined $33 million resulting in a $27 million loss in revenue to the state. 

Here are some media pieces on the snack tax:

http://kstp.com/news/stories/S2962465.shtml?cat=1

http://www.kare11.com/news/article/1016098/391/Minn-lawmakers-crunch-down-on-snack-tax-bill?odyssey=tab%7Ctopnews%7Cbc%7Clarge

Increasing Child Care Costs:

Democrat Mike Nelson (Brooklyn Park) pushed legislation unionizing privately owned family child care providers who serve families who receive child care subsidies.  Two years ago, Governor Dayton tried to unionize these independent operators through an Executive Order which was then struck down by a Judge who said Dayton overreached on his powers as Governor.

Unionization of these private businesses will result in higher daycare costs for parents because union dues will be deducted or diverted from child care assistance funds - eating into the daycare's bottom line.  Even providers who opt out of joining the union will be forced to pay "fair share" union dues of 85 percent. 

You can view testimony on this bill here: https://www.youtube.com/watch?v=llmX7FwQ1mE

Dayton's Tax and Spending Plan:

Thursday, Governor Dayton unveiled his revised budget plan.  Here are the highlights:

What's in Dayton's Tax Plan:

• Increases spending $2.7 billion - that's more than a 7 percent increase in spending

• Raises $1.83 billion in taxes

• Applies $1.1 billion tax increase on small businesses

• Adds $30 million tax on snowbirds

• Increases metro specific sales tax

What Dayton REMOVED from his Tax and Spend Plan:

• Removed payment of school funding shift. No longer pays it back.

• Removed business to business sales tax and extension of sales tax

• Removed $500 property tax rebate

Health Insurance Exchange 

Obama's Health Care Act requires states to form a health insurance exchange or have one forced on them by the federal government.  An exchange is supposed to be a marketplace for individuals and businesses to compare, choose, and buy affordable health insurance.  However, the exchange created by Democrat Joe Atkins will actually increase costs for consumers.

Costs of the Exchange to You:

• Individuals and businesses will pay 3.5 percent premium tax

• You lose your long-time doctor if they aren't on the plan. Guarantee of keeping them was removed from bill

• Limits consumer choice because the Exchange Board decides what is offered to you

• If exchange fails to reach participation goals, state general fund on the hook to fund it

• Lacks protection of your private medical data 

I opposed this legislation.  Small business groups opposed it as well including the Chamber of Commerce and National Federation of Independent Businesses.

This Week:

If you are looking for something fun or interesting to do this weekend, here are options available to you that are not far from your front door.

Plymouth READS is a community-wide engagement designed to encourage reading.  The book choice for 2013 is Spirit Care:  Journey to a Dakota Past by Diane Wilson.  For more information on special events, see here:  http://plymouthartscouncil.org/enjoy/plymouth_reads