Minn. gov candidate Bakk calls for tax on clothing

[The Northerner]

ST. PAUL, Minn. — A renewed call to tax clothing in Minnesota came on Thursday from Senate Taxes Committee Chairman Tom Bakk, one of 13 Democrats running for governor.

Bakk proposed extending the 6.875 percent state sales tax to clothing in July, raising more than $250 million the first year and about $300 million a year afterward. Clothing and shoes are now exempt from the sales tax as basic necessities, along with food, prescriptions and diapers.

The state senator from Cook said he would use the cash to help dig out of a current $1 billion deficit. Starting in July 2011, the money would go toward repaying schools for last year's $1.2 billion delay in state aid and lopping a quarter percentage point off the sales tax, saving shoppers a nickel on a $20 purchase.

Bakk said better-off Minnesotans who spend more on clothes would pay more under his plan, while those with lower incomes would feel relief from the lower sales tax rate.

"Somebody needs to have this discussion," said Bakk, who stood alone at a Capitol news conference and said he asked for a private meeting with Republican Gov. Tim Pawlenty to talk about the idea.

He added: "I would argue that this isn't even a tax increase. It's actually a cut."

Read more: http://www.google.com/hostednews/ap/article/ALeqM5iniatwKoK7eGwMYyB_7MreMccwrQD9E7VK0G0

[anonymous171]

1. If there has to be a clothing tax, it should only apply to designer clothing.

And it should be somewhere around +200%.

[MercutioATC]

3. Define "designer clothing".

There are plenty of $15 shirts with a designer's name on the label.

[TheCowsCameHome]

8. Anything that isn't second hand.

:rofl:

[SoCalDem]

2. There used to be a luxury tax.. 10%, IIRC.

it was on jewelry, cosmetics, perfumes, furs ( :( ), etc.

Perhaps a reinstatement of something similar now would help.. maybe an extra tax on luxury cars, boats, private planes, jewelry, etc..

[napi21]

5. They tried that luxury tax several years ago. All it did wascause businesses who sold those items

to go out of business.

[anonymous171]

7. So? They don't do much for a majority of Americans.

I don't see why I need to be overly concerned about their well being.

[joeybee12]

4. I'm kind of amzaed they DON'T have a tax on clothing...

...most states do, I'm pretty sure.

[napi21]

6. We've lived in 5 different States & all of them had sales tax on clothing.

It's actually become a big deal to have a "Tax free holiday" a little before school starts, but it's limited to things specific to back to school, like computers and things like that. I can't recall if all clothing was included last year or not.

[joeybee12]

11. Same here...the only one that didn't is my home state of CT which

got rid of it for items under $50 back in the 80's, but I hear there's a call to bring it back.

[Gormy Cuss]

9. Part of why it's such a regressive tax is the inclusion of basics like clothing.

In some states even food at the grocery store gets taxed. States that exclude basic clothing and food from sales taxes are reducing the burden on the poor.

MA is another state that excludes non-luxury clothing.

[trotsky]

10. It has been pretty nice, I must say.

And it's helped the visitors to the Mall of America.

I hate sales taxes, they're one of the most regressive, maybe THE most regressive. The only way I could get on board with Bakk's plan is to also set a minimum price for sales tax to apply. For instance, on items of clothing under $50, no tax.

[nyc 4 Biden]

12. same here.

in the past many NY'ers would go clothes shopping in jersey to avoid the tax.

[frazzled]

13. Although I miss the no tax on clothing thing in MN ... it's about time to scrap it

Maybe winter coats and boots should be exempt, because it's damned cold there! But I always felt like I was getting away with something when I bought a nice blouse and didn't have to pay the sales tax on it.

Living in Chicago now, where the sales tax is 10.25 percent on everything (including your food tab at a restaurant), I can tell you what regressive is. But this is the fastest, easiest way to raise some cash for a crashing state budget. It will be interesting to see, though, if the fairly big tourist trade they have from people coming from surrounding states to shop for clothes there dries up, thus depriving the state of hotel tax revenues, etc. We've flown to Mpls. from Chicago a few times where the plane actually had people who were going for a two-day junket to Mall of America to clothes shop--specifically because of the no sales tax provision. Seemed a little extreme to me. By the time you add in an airfare (even if it was cheap) and hotel and food, doesn't seem like you save much. But in their minds probably, at least we're not paying the revenooooers. People are weird.

[cutlassmama]

14. Good excuse to run around naked

:evilgrin:

[demigoddess]

15. I propose a tax on elective plastic surgery. Have you seen what that is doing to

beautiful faces of actors and actresses??? A nice hefty tax would be a public service.

[Dappleganger]

16. We've always paid tax on clothes.

Although occasionally we get a back to school tax-reprieve on clothing/shoes under $100.

[Skidmore]

17. People don't pay taxes on clothing?

Who knew? We pay a sales tax on everything but food here in Iowa. The only time we don't pay taxes on clothing is on the tax holiday at the beginning of the school year each year.