There's never a good time, I suppose, to learn that one's U.S. senator groped a sleeping woman while mugging for a camera. Still, it was particularly irritating to be interrupted with the news about U.S. Sen. Al Franken on Thursday just as the U.S. House was passing a mammoth tax bill that's skewed against Minnesota and other high-tax/high-services states.
How's an editorial writer supposed to summon readers to think high-minded tax policy thoughts when the day's news is about other body parts?
That's not a plea for pity — not entirely, anyway. It's also a lament on behalf of the 250 people who crammed into the Minnetonka City Council chamber Wednesday night to hear from three DFLers who want to replace one of the architects of the House's tax bill, five-term Republican U.S. Rep. Erik Paulsen of Minnesota's Third Congressional District.
The big crowd groaned at the mention of the tax bill that Paulsen insists will "work for them rather than against them." They cheered as DFL candidates Dean Phillips, Adam Jennings and Brian Santa Maria each vowed that he would vote "no" should such a bill come to him as a member of Congress.
That audience seemed aware that among its many flaws, the House bill's elimination of the 104-year-old deduction for state and local taxes is a particular blow to Minnesota. And within Minnesota, it's a body slam to the west-suburban Third District, where median household income in 2016 approached $85,000 and half of filers claimed that deduction. By a calculation cited on these pages by two metro county commissioners, the House bill would bring an average 6 percent federal tax increase to Hennepin County households with about that same income, $87,000.
That's not just bad for those who would pay more. It would be bad for every Minnesotan. It would ramp up pressure on state and local governments to spend less on education, infrastructure, the social safety net and the rest of the things they do to help Minnesotans prosper.
It would push Minnesota to rely less on progressive income taxes and more on the sales and property taxes that are disproportionately hard on the poor — in other words, to pressure a state like Minnesota to operate more like Texas. That runs counter to more than two centuries of federalism, the idea that American states should be free to run their own financial ships and serve their people as they see fit.
It's also shortsighted on the part of the feds. Minnesota and other high-tax states tend to be strong-economy states that contribute more to the feds than they get back each year. By one analysis, Minnesota is second only to Delaware as a net contributor to federal coffers. Asking Minnesotans to pay still more in federal taxes could damage Minnesota's economy in a way that lessens that money flow over time.