Proposed Tax Increase Irks Minnesotans

Posted on Mar 25 2015 - 5:19am by Admin
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Kurt Daudt, Minnesota House Speaker, announced to the public the Road Bridge Act of 2015 on Monday, while in Duluth. This is the plan of the Republicans to address problems regarding the deteriorating infrastructure of the state. The plan stipulates an agreement where $7 billion will fund various maintenance activities of infrastructures such as roads and bridges throughout Minnesota.

According to its developers, the plan shall prioritize road and bridge infrastructure. This means that the bulk of the government’s effort will focus on repairing roads within communities, improving highways for the local economy and commuters. Its authors also state that the plan shall include a scheme that enables the whole project to sustain its operations without increasing tax.

Governor Mark DaytonKurt Daudt said in an interview that-“We’ve heard loud and clear from Minnesotans that they do not want a gas tax in Minnesota,” Despite this however, Gov. Mark Dayton submitted a proposal that constitutes taxes on gas to increase by 6.5 percent. According to him, the wisdom behind the proposal is to assist in funding the infrastructure plan that is likely to hit hundreds of million.

The governor’s proposal received many negative thoughts, as many locals believe that they should not have dwell on such action immediately. Daudt stated “We’ve heard loud and clear from Minnesotans that they do not want a gas tax in Minnesota.”

According to experts, such proposal is inconsiderate about the fact that many Minnesotans are still feeling the effects from the increase passed the previous year. “Being that last year we had the largest tax increase in the state of Minnesota, and to follow the largest tax increase in history with another gas tax, which is the largest gas tax in history, doesn’t make any sense,” said Jerry Kortesmaki.

Kortesmaki, who is the owner of London Road Rentals states that such increase in gas tax will  greatly hinder his business.”Anytime we can leave money in the hands of private people they are going to spend it and hopefully at my store and other businesses like mine.”

The Republican Party stated its intention of paying in part for the road repair proposal with existing sales tax on auto parts and rental devices.

“We will also use about $1 billion of general obligation bonding over the course of the next 10 years, which is about half of what the Governor is proposing. His plan is proposing about 2 billion dollars of general obligation bonding,” said Daudt.

They also plan to include an additional $282 million funds for small cities that only has populations below 5000. The money shall pay for maintenance cost of 15,000 miles of roads and 330 bridges throughout the state.