Gubernatorial Candidates in Idaho, Minnesota, and Alaska Are Talking Taxes


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Candidates for governor in Idaho have been debating the appropriate scope of the state sales tax base, while the debate in Minnesota has focused more on issues of progressivity.  In Alaska, the bandwagon in favor of cutting taxes to “create jobs” continues to gain speed.

Idaho: Recent polling shows that 48 percent of Idahoans would support raising taxes to avoid cuts in education spending, while only 38 percent would oppose taking that route.  With this new information in hand, both Democratic gubernatorial candidate Keith Allred and Republican incumbent Butch Otter may want to rethink their positions on sales tax reform. 

Governor Otter insists that Idaho’s plethora of sales tax exemptions are vital to businesses in the state and should be left intact, while candidate Allred claims that a huge number of these breaks are politically motivated giveaways that should be eliminated to pay for a reduction in the sales tax rate.  While Allred’s opposition to sales tax exemptions is encouraging, his insistence that every dollar raised be used to lower the sales tax rate (as opposed to using some of it to boost education spending) is more than a little disappointing.

Minnesota: Minnesota’s legislature has known for some of the time that the state is in need of progressive tax changes.  Unfortunately, the veto pen of Governor Tim Pawlenty has so far been able to prevent any progress on this issue.  With Pawlenty finally on his way out of office, Democratic-Farmer-Labor (DFL) candidate Mark Dayton has made clear that he would take Minnesota in a different direction, if elected, by vigorously supporting progressive tax reform.  More specifically, in a debate last week Dayton reemphasized his support for a higher tax bracket on the state’s wealthiest residents. 

Republican candidate Tom Emmer, in contrast, repeated the same tired line about using tax cuts to boost economic growth.  But as Dayton pointed out during the debate, the League of Minnesota Cities actually found that candidate Emmer’s proposal to cut both taxes and spending would result in higher local property taxes.

Alaska: When it comes to taxes, there aren’t many choices on the Alaska ballot.  Democratic candidate Ethan Berkowitz recently proposed an almost $40 million cut in the state’s corporate income tax, which according to the Anchorage Daily News, Berkowitz claims he would pay for by doling out even more corporate welfare through tax credits that could allegedly boost the state’s economy.  Rather than criticize Berkowitz’s proposal or offer an alternative, Republican Sean Parnell’s campaign has taken the position that Berkowitz is lying, and that if elected Berkowitz would in fact do everything within his power to raise both taxes and spending.

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