Numbers
A lot of people were talking today about the tax increases proposed by the Minnesota Senate. These are the tax increases that I wrote about here. Well so much was said that I decided to do the math.
A little background. The Logical Husband and I make a combined $65,000. I left a full time job to work 3/4 time so that I could be home before and after school with the Junior Logician. This combined income puts in the top income tax bracket in Minnesota. $65,000 is considered "the uber rich" in this state! But I digress. I want to tax specifically about the taxes that were proposed yesterday.
Currently we pay the following in taxes per year
$ 120.00 in gasoline taxes on two used cars (a 1997 Ford Escort and a 1998 Ford Windstar van)
$ 100.00 to register both cars
$ 91.00 in tobacco taxes (that includes the $.75 "Health Impact Fee") for the Logical Husband.
$ 200.00 (more or less) a year in eligible tangible goods at 6.5% (see below).
$ 1014.00 in alcohol tax (we usually buy a decent bottle of wine and maybe a case of beer a week)
$1525.00 a year in state taxes that are being raised.
Under the proposed tax increases:
$ 240.00 in gas taxes
$ 200.00 to register both cars
$ 154.00 in tobacco tax
$ 350.00 or more in tangible goods at 7.5% (see below)
$1170.00 in alcohol tax at 7.5%
$2114.oo in taxes under the new calculations
Now some would say, that's only a $600.00 jump - you can handle that. However, when you add that to the $2200 in property taxes, the $5200 in state income taxes, $8125 in federal income tax and add all of the miscellaneous taxes and you are talking a full $20,000 of our families income. When you add that to a $10,000 annual mortgage, $ 4500 a year for utilities (phone, gas, electric, water, waste disposal), $1500 in state mandated automobile insurance, $10,000 in groceries, $3000 a year in gas to get to work, $1000 a year in commuting expenses, $5000 a year in medical premiums and you are looking at $55,000 in taxes and expenses! That gives us a whopping $10,000 a year for things like birthdays, Christmas and other special occasions. Forget vacations. Vacations are a luxury that we can not afford because the state and federal government has decided that I am one of the "super rich" and thus deserve to pay 1/3 of my income in taxes! Speaking of luxuries, we definately can not afford to get sick at this rate!
Now that is me, the average taxpayer. Let's talk about the less than average taxpayer. While an extra $1.20 per pack of cigarettes (I am trying to get the Logical Husband to quit but I also know how hard it is) and an extra $0.30 in taxes every week on my wine won't make that much of a dent in our budget, however, the Logical Husband only smokes 1 pack a week. Most people who are really addicted to cigarettes smoke at least one pack a day. For them, that is an extra $437.00 year. For a person on a little over minimum wage $437.00 a year is crippling! Now the DFL claims to be working "for" the poor (the ones that make $16,600 for a family of 3 like us). If that is the case, why is it that they are proposing draconian tax increases on things that these families use most (gasoline, cigarettes, durable goods)? These tax increases are regressive and aimed to punish the people that the DFL claims that they want to help! This from the same people that want to let undocumented workers stream across our southern border to take the barely minimum wage jobs that these poor people have. What is with that?????
Governor Pawlenty came out today and said that he would not support any tax increases - given that we currently have a $2 billion dollar budget surplus already. I hope he stands by that. Even moreso, I hope the Republican legislators in St. Paul will stand firm against this. Your constituents are begging you to please do so. Our household budgets simply can not handle another tax increase.
A little background. The Logical Husband and I make a combined $65,000. I left a full time job to work 3/4 time so that I could be home before and after school with the Junior Logician. This combined income puts in the top income tax bracket in Minnesota. $65,000 is considered "the uber rich" in this state! But I digress. I want to tax specifically about the taxes that were proposed yesterday.
Currently we pay the following in taxes per year
$ 120.00 in gasoline taxes on two used cars (a 1997 Ford Escort and a 1998 Ford Windstar van)
$ 100.00 to register both cars
$ 91.00 in tobacco taxes (that includes the $.75 "Health Impact Fee") for the Logical Husband.
$ 200.00 (more or less) a year in eligible tangible goods at 6.5% (see below).
$ 1014.00 in alcohol tax (we usually buy a decent bottle of wine and maybe a case of beer a week)
$1525.00 a year in state taxes that are being raised.
Under the proposed tax increases:
$ 240.00 in gas taxes
$ 200.00 to register both cars
$ 154.00 in tobacco tax
$ 350.00 or more in tangible goods at 7.5% (see below)
$1170.00 in alcohol tax at 7.5%
$2114.oo in taxes under the new calculations
Now some would say, that's only a $600.00 jump - you can handle that. However, when you add that to the $2200 in property taxes, the $5200 in state income taxes, $8125 in federal income tax and add all of the miscellaneous taxes and you are talking a full $20,000 of our families income. When you add that to a $10,000 annual mortgage, $ 4500 a year for utilities (phone, gas, electric, water, waste disposal), $1500 in state mandated automobile insurance, $10,000 in groceries, $3000 a year in gas to get to work, $1000 a year in commuting expenses, $5000 a year in medical premiums and you are looking at $55,000 in taxes and expenses! That gives us a whopping $10,000 a year for things like birthdays, Christmas and other special occasions. Forget vacations. Vacations are a luxury that we can not afford because the state and federal government has decided that I am one of the "super rich" and thus deserve to pay 1/3 of my income in taxes! Speaking of luxuries, we definately can not afford to get sick at this rate!
Now that is me, the average taxpayer. Let's talk about the less than average taxpayer. While an extra $1.20 per pack of cigarettes (I am trying to get the Logical Husband to quit but I also know how hard it is) and an extra $0.30 in taxes every week on my wine won't make that much of a dent in our budget, however, the Logical Husband only smokes 1 pack a week. Most people who are really addicted to cigarettes smoke at least one pack a day. For them, that is an extra $437.00 year. For a person on a little over minimum wage $437.00 a year is crippling! Now the DFL claims to be working "for" the poor (the ones that make $16,600 for a family of 3 like us). If that is the case, why is it that they are proposing draconian tax increases on things that these families use most (gasoline, cigarettes, durable goods)? These tax increases are regressive and aimed to punish the people that the DFL claims that they want to help! This from the same people that want to let undocumented workers stream across our southern border to take the barely minimum wage jobs that these poor people have. What is with that?????
Governor Pawlenty came out today and said that he would not support any tax increases - given that we currently have a $2 billion dollar budget surplus already. I hope he stands by that. Even moreso, I hope the Republican legislators in St. Paul will stand firm against this. Your constituents are begging you to please do so. Our household budgets simply can not handle another tax increase.
posted by The Lady Logician at
7:22 PM
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