Tax implications of a Harris / Walz administration, part 1

[Mick1]

Despite taking office in 2019 with a $17.6 billion state budget surplus, Walz slapped Minnesotans with a series of tax increases. Like Newsom, Walz spent the surplus has been spent so Walz imposed $10 billion worth of additional taxes, including:

• A 0.7% payroll tax on employers, half of which may be passed on to employees, making Minnesota among a handful of states with a payroll tax.

•  A 50-cent tax on more than $100 in retail deliveries except food. Colorado is the only other state with a retail delivery tax.

• An increased motor vehicle sales tax from 6.5% to 6.875%, among the highest in the country.

• A 1% sales tax in seven counties in the Minneapolis metropolitan area to more than 8% and 9% in Minneapolis. The average sales tax in the U.S. is roughly 6%.

• A 1% surtax on net investments such as capital gains, dividends, rental income, royalty and other investment income that exceeds $1 million a year.

• Increased corporate taxes by targeting a portion of the revenue Minnesota companies generate abroad.

• Limited tax deductions on families with annual incomes of more than $220,000.

He also demanded a 10 cent per gallon gasoline tax hike and wanted to increase the income tax on millionaires from 9.85% to 10.85%. Neither of those passed.

What’s most interesting is that since the COVID-19 economic recovery began in Q2 ’20, Minnesota’s growth has lagged the national average by 5.5%.

That’s what we can expect from a Harris / Walz administration.

Audaces fortuna iuvat

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