DECISION 2022
In an effort to keep you, our readers, well-informed and abreast of relevant issues, today is the 18th – and last – in a series of questions we are asking all of Steele County’s candidates for state office.
We want voters to know where each candidate stands on the issues in order to make their best decision at the ballot box.
Each week, we’ll ask the candidates a new question. They will all receive the same question, be given a word limit and a deadline of four days to answer. We’ll publish their answers the following Wednesday; responses may be edited for length.
After this week, we’ll give the candidates a little break before the Nov. 8 general election.
If a candidate doesn’t respond, we’ll note that.
This week, we’re asking about taxes:
The two guarantees in life – death and taxes – carry a bit more weight in Minnesota.
The state’s income tax rates start at 5.35%, and seniors run the risk of having the state tax a part of their Social Security benefits and pensions.
The 1.08% property tax rate is slightly above the national average, though Steele County is even higher, at 1.23%.
Sales tax rates in the state are higher than the national average, too, and Minnesota also imposes an estate tax.
All of that to say, residents pay a lot of taxes. Do you have ideas or plans for any sort of tax relief?
There was a 300-word limit.
We advise you to ignore the R or DFL behind each name and reflect only on the answers. You might be surprised to find more common ground than you expected. An (i) indicates the incumbent candidate, though with this spring’s redistricting, the district numbers may not align with the seat they’re seeking.
Question 18: Do you have ideas or plans for any sort of income, property, or sales tax relief? (300 words)
Minnesota House District 19B
Abdulahi Ali Osman – DFL, of Owatonna: Did not respond.
John Petersburg – R (i-24A), of Waseca: One of our fastest growing segments in our society is our senior citizens and most of them are on fixed incomes. It makes sense to me that we need to eliminate the income tax on Social Security benefits. Leaving more resources for them to live on.
We know that when more dollars stay in the taxpayers’ pockets vs in the state's control, those dollars circulate more times within the community. This will stimulate the economy and raise the standard of living. Therefore, I like the proposal from last year that would cut the taxes in the lowest tier income level. Therefore, providing a tax cut for virtually all taxpayers.
Finally, the state and local jurisdictions need to learn how to become more efficient and innovative to keep all taxes lower. When our taxes grow faster than our wages, we are in trouble. That type of prioritizing and restraint is very difficult to do and is usually very unpopular. But we need to remember that the government cannot provide any funding for services until it first takes that money from others.
Minnesota House District 23A
Peggy Bennett – R (i-27A), of Albert Lea: Minnesota taxes are among the highest in the nation. This doesn’t even include all the hidden “taxes” that we pay – the many expensive fees (permits, license tabs, wheelage tax, etc.); unseen business taxes that drive up the cost of products; unfunded state mandates that increase school, city and county operational costs and thus our property taxes; and state mandates that raise the price of everyday things like electricity and sewer/water payments.
Our governor recently said that, yes, we pay higher taxes in Minnesota, but “we all benefit from that with a better quality of life.” That’s a nice sound bite, but it’s not reality. Minnesota crime is abominable; our achievement gap for students of color is worse than ever; nursing homes are struggling to stay open; and Minnesota electricity costs have gone from among the least expensive states in 2015 to now one of the topmost expensive states. I could go on. Minnesota taxes continue to go up while our quality of life is going down.
We absolutely should lower taxes – but in a smart way. Let’s start by eliminating the Social Security tax for our seniors. Next, set a goal for how much we want to lower the income tax brackets and then phase that reduction in over a few years. Let’s lower taxes but do it in an appropriate way that protects our state from the typical wild swings between surplus and deficit.
Mandate reform: Any state mandate that would impose large costs on local governments or citizens should be required to do a cost-benefit analysis to determine its “bang for the buck.” Case in point: wastewater treatment plant mandates. Mandating high costs to citizens for a low or no return in effectiveness makes no sense.
Mary Hinnenkamp – DFL, of Albert Lea: Every April, my husband and I write checks for the federal and state taxes we owe. Ouch, that can feel painful! But every April, we also remind ourselves that we appreciate good schools, well maintained roads and streets, parks and green spaces, law enforcement, Medicare and Medicaid, and national defense. These are things worth paying for, and Minnesota is a good place to live.
I am frugal by nature. I never buy a car new, and I live in a small, modest house.
If elected to the legislature, the questions I will ask on proposed bills are: is this needed? how will we pay for it? and will the taxes be fairly assessed? I will always judge proposals through the lens of representing District 23A and what is good for the citizens here.
When needed, I prefer levying progressive taxes, such as income taxes, which impose a higher levy on people who are most able to pay. Estate taxes (sometimes referred to as death taxes) fall into this category as well, as they only affect the richest 2% among us.
I oppose regressive tax increases which fall disproportionately on lower income folks: sales taxes, property taxes. I am grateful that Minnesota’s sales tax isn’t levied on food or clothing.
We can reduce taxes. When the Republican-controlled Senate went home last spring, they were irresponsible. They left cities, counties and townships in a tough situation: figure out how to pay for schools, road and bridge repairs, and waste treatment upgrades. Their irresponsible behavior may lead to higher property taxes rates, affecting seniors on a fixed income, or young families already struggling to make ends meet. I will work to use some of the $9 billion surplus for LGA and bonding money to fund local projects to keep local taxes lower.
Minnesota House District 23B
Patricia Mueller – R (i-27B), of Austin: It is no secret that Minnesotans pay a lot of taxes. As a matter of fact, the state surplus is indicative of over-taxing. In 2021, despite people trying to recover from COVID and reeling from increasing inflation, Governor Walz purposed tax increases on hard-working Minnesotans and their businesses. That is on top of a gas tax. We are the 5th highest taxed state in the union with Minnesota being one of 13 states who continue to tax Social Security. Both job providers and seniors have other options in states with lower taxes. We need to create a business-friendly environment so hard-working Minnesotans can get good-paying jobs and keep more of their money so their employees are able to thrive. The principle is the same for senior citizens. We need our seniors to stay as they are foundational to the success of our communities and their families.
In 2022, Governor Walz suggested simply returning the state surplus by dividing it “equally” among Minnesotans. This is not tax relief, this is redistribution. I support not only completely eliminating the tax on social security, but also permanent and meaningful tax relief that is proportionate to what an individual pays in taxes. This would result in people keeping more of their money so they can invest in their communities.
Tom Stiehm – DFL, of Austin: Taxes have a bad reputation, and deservingly so. Our tax codes need to reflect the fact that most seniors live on diminishing incomes. It is not fair to tax seniors at the same level as they were in their productive years. I am against taxing seniors on Social Security.
I believe corporations need to be held accountable to pay their fair share. Many corporations pay less than the average taxpayer; not the way it should be.
Taxes should translate directly to quality of life. One of the first things I did as Mayor of Austin was to compare the highest taxed countries with the countries with the highest standard of living, and the highest happiness rate. Turns out they were the same countries.
I then did the same comparison with the states. And it showed similar results, not quite as dramatic as the country comparison, but similar.
It was obvious some states don’t do as well as others in this area; Minnesota is not one of those.
Politicians should always strive to keep taxes as low as possible, and as fair as possible.
Minnesota Senate District 19
Kate Falvey – DFL, of Faribault: The first tax relief that needs to come through is the complete removal of the income tax on Social Security checks. This removal is one of many tax relief proposals that passed through the Senate Tax Committee, but weren’t carried through to a vote at the end of the 2022 session.
Minnesota is one of 12 states that charges income tax on (most) Social Security checks.
Second, we must equitably and FULLY fund education using state taxes paid so that this cost is not added to property taxes in communities. School districts in SD19 must ask citizens for money more often than they should. The property tax burden in our district would not be as high if the state had passed the House plan for $1 billion dollars of the surplus going to education. The state legislators must figure out how the STATE will fund these mandates that are currently unfunded or underfunded - requiring the communities to make up the difference.
Regarding sales taxes, I will have to do some research. In general, we have to take a look at what we are taxing in regard to sales tax. For example, Minnesota has no sales tax clothing, something considered a life necessity. In Iowa, they have a lower general sales tax because they tax clothing. I believe that having a higher general sales tax, but NO tax on clothing is a good thing for Minnesotans.
For estate taxes, I would like to review the current formula. I especially would like to look at farmland inheritance and any estate taxes placed onto farm families. Our farm families should be encouraged to continue farming their own land. A good start for this to be able to happen more often is being able to inherit the farm with lower (or no) taxes.
John Jasinksi – R (i-24), of Faribault: Minnesota is one of the highest taxed states and I strongly believe we are losing opportunities to other states because of it. Last session, Senate Republicans passed a tax relief bill that reduced taxes for every single resident who pays taxes here in Minnesota. Our plan included reducing the first-tier income tax from 5.35% to 2.8%. This would affect every person who pays taxes here in our state. Minnesota’s lowest rate is higher than the highest tax rate in 24 other states in the nation.
Our second goal was to eliminate the tax on Social Security for our seniors. Minnesota is only 1 of 13 states that taxes Social Security benefits. The most important thing to remember about our Senate Republican plan that it was “ongoing” tax relief, which means it would continue, week after week, month after month, and year after year. The Democrat alternative plan was to send one-time checks back to Minnesotans. If that wasn’t enough the governor wanted to name them after himself calling them “Walz checks” as an election year gimmick plan to get votes. Even more concerning was that the governor and House Democrats wanted to increase spending by $4 billion, which would increase spending into the future for years to come.
In last’s years tax bill, I also had a provision that was included that would have eliminated the statewide property tax on our small businesses and job creators.
Finally, I think we need to work to change and reduce the amount of estate tax that is paid here in Minnesota. We need to continue to try and keep our residents and their tax base here in Minnesota.
Minnesota Senate District 23
Gene Dornink – R (i-27), of Brownsdale: When we passed the biennium state budget in 2021, we included the largest tax relief package in over 20 years. We were able to do that despite being the only divided legislature in the country. It can be difficult at times, but passing targeted tax relief for the lower and middle class is something we can come together on.
With inflation at all-time highs and Minnesotans struggling to put food on their tables, gas in their tanks, heat their homes. All families need some tax relief, especially when we have a $10 billion government surplus.
This year, in 2022, which normally is a bonding and policy year, we once again prioritized tax relief. With the projected budget reports coming out, it became clear the state was going to have a massive surplus. When the news hit of a large surplus, I began getting calls, emails and visits letting me know that we needed to give the money back. That’s exactly what we tried to do. Senate Republicans passed an $8.3 billion tax relief package with bipartisan/ tripartisan support. The two big pieces of that package were totally eliminating Social Security tax on our seniors and cutting the lowest income tax rate. We are one a few states that still tax our seniors’ Social Security and our lowest income tax rate is higher than the highest rate in 19 other states. Cutting the lowest income tax rate would’ve given families more money in their pockets month after month, year after year. Democrats wanted, instead, to give a one-time gimmick check which they coined ‘Walz Checks.’
We had an agreement on the tax proposal. All tax bills need to start in the House and for whatever reason the Democrats never took it up for a vote.
Brandon Lawhead – DFL, of Austin: Did not respond.