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welfare for the wealthy

minnesota_state_capitolI didn’t foresee this. If you ask me it’s brilliant.
 

Dayton added that, by signing the (tax cut) bill, he was protecting funding for the Minnesota Department of Revenue. Earlier he chastised Republican lawmakers for adding what he called a “poison pill” provision to a bill that would have eliminated all Minnesota Department of Revenue funding if it were killed, a move the governor described as a “reprehensible sneak attack.”
 
In response, Dayton used his power to eliminate spending for the House and Senate.
 
The gravity of that move wasn’t immediately clear but it’s certain to trigger a confrontation with GOP legislative leaders.
 
When asked about slashing legislative funding, Dayton told reporters, “Well, they can come back and get it restored …. we’ll find out how much money they have stashed away” in reserve accounts.
 
The governor said he would be willing to call a special session but only if lawmakers agreed to cut out provisions he still finds distasteful, including tax relief on tobacco products.
(MPR)

Actually, the worst thing in the bill in my estimation is the long term tax cut welfare for the rich inherent in the property tax changes for businesses.
 

The state revenue loss resulting from changes to the state business property tax in the tax conference committee report are likely to increase rapidly over time—for reasons described in a recent North Star article—and ultimately surpass the revenue loss associated with other tax cuts in the report. As the magnitude of that tax break swells in future years, the relief will shift from low-value to high-value businesses, and from Greater Minnesota to the seven-county metropolitan area.
(North Star Policy Institute)

Though the estate tax changes are loathsome giveaways to those least deserving, as well. And cutting taxes on tobacco products, despite those taxes’ demonstrated effect in reducing teen, and adult, smoking, is unconscionable.
 
I suspect that MN Party of Trump legislative leadership is on the phone, or videoconferencing or whatever, with ALEC as I’m typing this (7AM Wednesday), getting their instructions on what to do. There are a lot of wild cards here, and I’m not going to speculate on the outcome.
 

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Handouts for the haves

by Dan Burns on April 22, 2015 · 1 comment

greed1Just a few examples to remind us of what our socio-political system is all about. Namely, plutocracy and open bribery.
 

The six tax breaks that Sanders wants Obama and Treasury Secretary Jack Lew to eliminate are:
 
The check-the-box loophole allows multinational companies to characterize their offshore subsidiaries in different ways to different governments so that their profits are untaxed.
The Hewlett-Packard loophole allows American corporations to use short-term loans from their subsidiaries circumvent the requirement that they pay U.S. taxes on their offshore profits when those profits are brought to the U.S.
The corporate inversions loophole allows an American corporation to merge with a (usually much smaller) foreign corporation and then reincorporate as a foreign company to avoid U.S. taxes even as it continues to operate and be managed in the U.S.
The carried interest loophole allows hedge fund managers to characterize their compensation (which they earn for managing other people’s money) as capital gains, which is subject to lower personal income tax rates than other types of income. Tax experts have pointed out that the Treasury Department has the authority under existing law to determine how this income is taxed.
Valuation discounts are restrictions placed on small business property given to family members (to keep the business in the family, for example) which are often meaningless but are claimed to dramatically reduce their value for estate and gift tax purposes.
The real estate investment trust (REIT) loophole allows private prisons, billboard companies, casinos and other companies claim that they are making money from rents to avoid paying the corporate income tax.
(Sen. Bernie Sanders)

 
…READ MORE

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