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Reducing income tax will have negative impact

To the Editor:

When thinking about tax policy, thinking about what revenue stream is the fairest and based upon people’s ability to pay is extremely important.

I found quite the contrast on Tuesday’s Oct. 25 front page of the Independent on headline stories of gubernatorial, Scott Jensen’s thoughts for phasing out the state income tax and the Q & A on the Marshall school referendum interview with Superintendent Jeremy Williams.  I noted in the interview that the primary source for funding for schools is from the state and the largest source of funding is our income tax.

Most schools like Marshall and my hometown of Wabasso need additional resources of revenue to operate and that comes from property taxes through what is known as an operating referendum. Operating referendum revenue is a mix of local property taxes and state paid revenue.  The less property value per student in a district, the more state money comes from the state to the school district. Farmland is exempt from school operating levies. This holds down farm property taxes by increasing the amount of money from the state.

 Reducing the income tax stream is going to have a real negative effect on the already shortfall of funding for education in Minnesota.  More alarming is reducing income tax revenue, the state is less able to help pay operating referendum money to the school district and taxes on farms and farmland will skyrocket. 

Jensen’s proposal appears risky to join 20% of the states that don’t have income tax.

Income taxes are progressive, meaning each person is taxed on their ability to pay. They are fairer than property taxes and sale taxes.  At a time when we need to catch up in education, we shouldn’t experiment with risky revenue streams.  

It is important that we all vote this fall, but also take time to evaluate critically who provides the most stability and thoughtful leadership as governor for the next four years.  I will be supporting Tim Walz because of his record of leadership as a former Congressman and as Governor.

Paul Sobocinski

Wabasso

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