Tax relief now and for the future

I met a man and his wife while I was campaigning last fall. He was a veteran, inventor and entrepreneur who, after he left the service, started a small business designing and building oil pumps out of a shed on his property. He was doing alright for himself — he sold his pumps to the military and to commercial airlines — and he told me he doesn’t mind paying taxes, but the current tax climate makes it difficult for him to be competitive.

We designed our Advancing Minnesota tax bill, which recently passed the Senate with bipartisan support, with people like him and his wife in mind — the millions of people who get up each day and go to work who desperately need some relief. These Minnesotans drive our economy, and create prosperity and new opportunities for growth.

Our tax bill follows the vision I laid out in a column earlier this year -— to create a simple, fair, sustainable tax relief bill that strengthens and improves the lives of every citizen in our state. From Main Street to the urban core, from farm to city, every Minnesotan can benefit.

Our plan contains the first real rate reduction in 17 years, targeted to low-and-middle-income taxpayers. It includes help for Main Street business owners, help for schools and teachers, and help for property taxpayers. It stabilizes rural Minnesota, which benefits our agricultural community.

There is a second urgent issue we have to consider — planning for the future. There are serious challenges on our horizon. The most critical concern is a massive, fast-approaching shift in our demographic landscape. Baby boomers will drive these changes as they begin retiring in large numbers by 2020. At that time, with an aging population and declining fertility rates, our labor force will grow at an “unprecedented” low rate of only 0.1 percent, according to the state demographer.

The combination of retiring baby boomers and a shrinking labor force will put extreme pressures on our economic vitality. We can’t run from these numbers; as the saying goes, “demographics are destiny.” But we can prepare ourselves.

Our tax bill will strengthen our economy and create new opportunities, but will also address these challenges by putting every single student in a position to succeed.

We accomplish this with Opportunity Scholarships. Similar to the existing AWARE pre-k scholarship program, Opportunity Scholarships allow low- and middle-income children to attend a school that meets their needs, using privately funded scholarships. No money from the state treasury will be used for this program. Minnesota has the worst achievement gap in the nation, and it has persisted for years; we ignore the plight of these children to our everlasting shame. It is time to give them a fighting chance to succeed.

The Senate Republican tax bill advances Minnesota by generating economic activity and preparing us for the future, but more importantly it focuses on empowering citizens to create something for themselves and their families. It’s the beginning of a wholesale change in mindset that puts you and your family first – not the government. We’re taking Minnesota in a new direction that concentrates on shared prosperity, where everyone is treated equally and fairly, so we are ready to face the challenges of the future.

http://www.presspubs.com/white_bear/opinion/article_b6b4e782-1f0e-11e7-97ee-431827683a50.html