[Speed Gibson,
Wednesday April 20, 2005 at 11:22pm]
Alternative Maximum Tax
The Alternative Minimum Tax is becoming ever more well known to us, at both the Federal and State level. It puts a floor on just how much you can really deduct from your Gross Income to reduce your income tax due.
How about putting a ceiling on it, too, the Alternative Maximum Tax?
Currently, Minnesota's State and Local tax burden is about 11% overall. Part of this we don't see directly, such as the employment taxes not shown on your pay stub. Another portion is due to the many small sales tax payments we make every day, difficult to sum. Leaving these out, the sum of our income, property, and major sales tax payments such as for a car should easily be below 10 percent.
Therefore, let's have a form where you can list your total gross income, your Minnesota income and local property taxes, and verifyable major sales tax payments. If the total taxes are over 10 percent of your income, the State of Minnesota writes you a check for the excess. They in turn can bill the local units of government, pro rata.
If I were in the Legislature, I'd author such a bill, just to get the reaction. I'd sure like to hear why not.
How about putting a ceiling on it, too, the Alternative Maximum Tax?
Currently, Minnesota's State and Local tax burden is about 11% overall. Part of this we don't see directly, such as the employment taxes not shown on your pay stub. Another portion is due to the many small sales tax payments we make every day, difficult to sum. Leaving these out, the sum of our income, property, and major sales tax payments such as for a car should easily be below 10 percent.
Therefore, let's have a form where you can list your total gross income, your Minnesota income and local property taxes, and verifyable major sales tax payments. If the total taxes are over 10 percent of your income, the State of Minnesota writes you a check for the excess. They in turn can bill the local units of government, pro rata.
If I were in the Legislature, I'd author such a bill, just to get the reaction. I'd sure like to hear why not.