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Politics & Government

Holberg: Most Talked About Constituent Issue— Taxes Head to Conference Committee

Holberg: "We have just three weeks left before the state's budget must be passed, and both the House and Senate Tax Omnibus bills are under consideration after a tough struggle to pass them."

Editor's note: The following is a newsletter from Lakeville's State House Representative Mary Liz Holberg, R-Lakeville.

Minnesotans are justifiably concerned about the runaway tax and fee increases headed their way when this legislative session adjourns. We have just three weeks left before the state’s budget must be passed, and both the House and Senate Tax Omnibus bills are under consideration after a tough struggle to pass them. A conference committee is now merging the two tax bills and a final product will come back to the House for final passage.

The 2013 House Tax Omnibus Bill was passed last week by a handful of votes with bipartisan opposition. The Senate’s bill (including new taxes on clothing and personal services) passed on Monday with just barely enough votes. I did not support the House bill because of the devastating impact it will have on our state’s families, job creators and our economic recovery. Combined with the new fees already passed this session, the tax bill collects $3 billion more from our hardworking taxpayers for more wasteful spending and inefficient government programs. This is the largest tax increase on Minnesotans in three decades.

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The tax and fee increases will impact everyone in our area. There is a shift in the tax brackets to significantly increase taxes on wealthier filers, but even low and middle income earners could see an increase (beginning at $21,651 for single filers). Tobacco taxes will increase by 133%, alcohol sales and production taxes by up to 500% more and tax deductions for charitable contributions are now eliminated. The bill collects nearly $550 for every man, woman and child in Minnesota, or $2200 for a family of four, on average.

Other states attempting to generate huge amounts of revenue from higher income taxes, cigarettes and alcohol have failed. We live in a world where money walks and capital moves, and all of our neighboring states offer significantly more economic freedom than we do. A hostile business environment creates high unemployment that results in lower tax revenues, creating high state deficits and cuts in services. High rates of unemployment push more families from the middle class to the lower class and into poverty.

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MNDOT Road Closure – I-35E Southbound

I want to make sure you’re aware of the I-35E southbound road closurebeginning tonight at 10 p.m. and lasting until June 2. The southbound lanes will be closed from County Road 42 to the 35W/35E split and traffic will be diverted on local roads near Burnsville Center. Drivers are asked to use westbound 494 and southbound 35W as a detour during the project. This could create significant delays, so please plan accordingly. You can sign up here for email project updates to keep informed of traffic changes in the south metro.

Thank you for the opportunity to serve you in St. Paul.

Sincerely,

Mary Liz Holberg

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