And so they are seeking to increase the taxes of everyone making over $45,000 a year – what most of us would still define as middle class.

Memo to Minnesota: Some of our wealthiest residents think state government needs more money and say they're willing to pay the bill.

More than 200 wealthy Minnesotans signed a full-page ad that appears in the Star Tribune today asking the state to raise $2 billion for various initiatives by increasing the state's tax burden for high-salary earners.

"We need to invest more in our future," said Joel Kramer, former publisher of the Star Tribune and founder of think tank Growth and Justice that organized the "Invest for Real Prosperity" fiscal strategy.

The new money should be used to improve educational opportunities, provide affordable health care and fund transportation needs, Kramer said. His group has argued for several years that the state's wealthiest residents should pay higher taxes to fund needed government programs.

Business leaders Jim Pohlad of Marquette Financial Company, Richard McFarland, retired CEO of Dain Rauscher, and Lee Lynch, former CEO of Carmichael Lynch, were also key contributors to the current proposal that would make those earning more than $275,000 pay the state an additional 2 cents in taxes for every dollar earned. That would be an additional $6,000 in taxes for someone earning $300,000.

State taxes for anyone making less than $45,000 would not increase and the rates would vary for everyone in between. Kramer said he hopes the ad will create public interest and discussion, perhaps leading to legislative action. He also acknowledged that even if the tax increase was approved, it would take "some faith in government" to trust that the money would be appropriated according to the group's requests.

I’ll tell you what needs to happen – Minnesota needs to follow a number of other states in enacting a “Tax Me More” fund for those who feel like they need to be taxed more. But if Minnesota does so, it will likely experience the same thing as those other states – those who claim to be under-taxed won’t put their money where their mouth is by ponying up the “excess personal wealth” that they think rightly belongs to the government and not themselves. Apparently they believe that it is everyone else – but not themselves – who is undertaxed.

Posted by: Greg at 11:15 AM | No Comments | Add Comment
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