Posted: 01/31/13 06:54
by Dave Mindeman
Rep. Pat Garofalo went into a tirade during an appearance on Almanac: At The Capitol. He was warning of the dire consequences when North Dakota proposes an end to its sales tax on clothing.
Oh my God....how would Minnesota compete? Garofalo actually said in reference to the North Dakota proposal:
"Retail businesses in border communities like Moorhead will be destroyed."
Garofalo loves that flaming rhetoric doesn't he?
Fact: North Dakota sales tax is currently 5.0%. Fargo, ND which is the booming ND metropolis across the river from Moorhead adds a 2% city tax. So here is the facts. Under Dayton's tax proposal, Moorhead (which adds no city tax) would be 5.5%. Fargo would charge 7.0% Clothing may be exempt in the future, but Moorhead will still have clothing under $100 exempt as well.
(Incidently, Fargo would probably oppose a sales tax exemption on clothing because that would greatly reduce revenues from the city tax.)
Now I ask you....does that sound like imminent destruction?
Frankly, all this talk about sales competiton with other states based on sales tax rates are mostly bunk anyway. Minnesota's current tax rate of 6.875 is higher than all of our neighbors currently. If anything, we should get a sales boom the other way since our overall rate will go down to 5.5% under Dayton's proposal....if such differences actually made any real difference.
It would be nice if, just once, Rep. Pat Garofalo would offer an actual legitimate argument.