Faith and Public Policy: focus on taxes
As the session winds down, and the conference committee’s begin to hammer out the differences between the Senate and House positions on bills, one of the topics receiving the most attention is Taxes. Taxes, Taxes, Taxes, What should we do with our taxes?
For the past several years, tax receipts have outrun both revenue projections and state expenditures resulting in generous budget surpluses. Over the course of the same years, needed investments in affordable housing, health care, the safety net, and economic opportunity went begging for lack of resources.
Regardless of income, nearly all Minnesotans pay about 13% of their income to the combined property, sales, income, excise, and business tax systems. This rate applies to the poorest Minnesotans, even after refundable credits, and the combined rate slightly drops for those citizens who enjoy fabulous wealth.
The Catholic tradition teaches that human dignity can be protected and a healthy community can be achieved only if human rights are protected and social responsibilities are met. Our responsibilities and obligations as citizens are to build up the common good and well being of all, especially the poor and vulnerable. Minnesota’s state and local tax
system should raise sufficient revenue to safeguard human dignity and to advance the well being of all. Further, public revenues should be raised in a manner that protects subsistence income from taxation and respects each person’s ability to pay.
We call for public policies that -
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Make Minnesota’s overall tax system fairer by using ability-to-pay as a guide to tax policy;?
Target tax reduction to low and moderate income households;?
Increase the Working Family Credit to protect income needed for basic needs;?
Respond to the increasing costs of caring for family members by increasing dependent allowances anddependent care tax credits;
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Strengthen the metro areas regionally shared tax base to strengthen the overall health of the TwinCities Area.
The Senate has a plan, the House has a plan, and the Governor has a plan. Everybody has a plan, but before we as a state arrive at our plan, we need to base our actions on what is best for the common good.
We have a terrific opportunity in Minnesota. Blessed with the bounty of surplus, we are afforded the opportunity to combine both focused tax cuts and wise investments to make our state economically stable for the future. Let us place the long-term common good above our own short-term individual interests and support those tax plans that protect the most vulnerable members of our communities. Indeed, this is our greatest option if we hope to safeguard the economic viability, social health, and political empowerment of Minnesota’s citizens for the years to come.
When this column was drafted, the tax committee was continuing to meet to find the compromise between the Senate, House and Governor’s tax plans. Call your Senator, Representative or the Governor and express your opinion regarding the various tax proposals.