Posted: 02/08/13 16:29
by Dave Mindeman
Business has been trying to take down Governor Dayton's proposal on sales tax expansion. They warn us that this will cost the state enormous loss of business confidence.
Our good corporate citizens are just giving us the facts.
Then you see this....
Minnesota loses nearly $2 billion a year in tax revenue due to some of the state?s major corporations and wealthy individuals moving their earnings to tax havens, a new report found.
Tax havens are countries or jurisdictions that have very low or nonexistent taxes; that group includes Switzerland, Belize, Bermuda, and the Cayman Islands.
The report, titled ?The Hidden Cost of Offshore Tax Havens? and compiled by Boston-based advocacy group U.S. PIRG Education Fund, found that the state?s $1.95 billion yearly loss in tax revenue is the sixth-largest among all states. California, with yearly tax losses estimated at $7.1 billion, topped the list, followed by New York ($4.3 billion), New Jersey ($2.8 billion), Illinois ($2.5 billion), and Pennsylvania ($2.1 billion).
Minnesota loses nearly as much as Pennsylvania and Illinois. States with much larger populations.
There is a touch of irony in that Dayton's proposal would increase revenues by about $2 billion and our corporate brethren are sticking it to the rest of us for about that same amount.
And then they complain about how "unfair" it is to them.
Tell you what, oh great corporate gods. We'll make a trade. You pay the taxes you have been stealing from the state every year and we will adjust the sales tax on business to business transactions.
Think they would do that? Not a chance.
They would rather keep the stolen money and whine about the rest of it.
Why do we listen to them exactly?