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Editorial: Repeal new 2013 taxes

During the 2013 session, Minnesota lawmakers enacted three new sales taxes on business-to-business services. The backlash was almost immediate, and there has been considerable pleading for a repeal of each of these new revenue sources during the new legislative session that got under way Tuesday.

Gov. Mark Dayton originally proposed a cornucopia of tax increases prior to the 2013 session, including those on business-to-business services, but by March changed his mind on the latter. They wound up passing anyway, and Dayton is now saying that repeal of the taxes should be a priority in St. Paul.

It’s expected there will be no shortage of sentiment for repeal. It’s not too difficult to figure out why: the new laws hurt Minnesotans statewide.

In a visit to the Daily Globe on Monday, Minnesota Chamber of Commerce Director of Communications Jim Pumarlo — accompanied by folks representing Worthington’s chamber — discussed the need for putting an early end to the business-to-business taxes passed last year. In a nutshell, the additional financial burden caused by the 2013 changes have made Minnesota a less appealing to place to do business, they contested — and their point is tough to argue. Not only do these taxes make attracting new busineses to Minnesota more challenging, but they don’t help with retention, either — a point not lost on a border community such as Worthington.

While many favor a repeal of the new taxes, Senate DFL leadership has expressed a reluctance to reverse course. We hope they heed the advice of their governors — not to mention a host of others — and undo these mistakes of last year.