Bakk Proposes Sales Tax on Clothing

State Capitol - March 4, 2010
By Tanner Curl

DFL gubernatorial candidate and state Sen. Tom Bakk has proposed to remove the sales tax exemption on clothing starting July 1. According to Bakk, such a move would generate $120 million annually. This revenue would be designated to help repay schools part of the $1.7 billion shift in payments Gov. Tim Pawlenty implemented last year to balance the current budget. "This proposed bill is an opportunity to make an investment in our children and in our future," Bakk said in statement.

Republican Senate Minority Leader David Senjam, along with Gov. Pawlenty, denounced the proposal. "Minnesota families are currently overburdened with excessive taxes and Senator Bakk’s call for new tax increases is simply the wrong approach to jump-starting Minnesota’s economy," Senjam said.

In addition to lifting the sales tax exemption, Bakk's proposal includes a provision to lower the general sales tax from 6.5% to 6.25%. "[This decrease] will save taxpayers and business owners millions of dollars on purchases. This offsets some of the ramifications of the tax on clothing and makes it more likely to pass into law," he said.

In his gubernatorial bid, Bakk has struggled to stand out in the crowded DFL field. His campaign's message has centered on the idea that these tough times require someone with a moderate approach who is willing to buck ideologues on both sides of the political spectrum. This clothing tax proposal fits that mode. In a statement, Bakk said, "Bold ideas require strong leadership and my proposal acknowledges that our financial situation is something that cannot be ignored."

Essentially, he's saying it's not easy to call for tax increases, but they're necessary, and he hopes you'll respect him for his honesty. Given that some of the most energized political activists belong to the vehemently anti-tax Tea Party, that could be a risky political argument. And, of course, most Republicans would argue that Bakk's proposal fails on its merits and the only way to grow the economy is to cut taxes.

Just another day in the eternal debate over the size and scope of government in Minnesota.

You can read Bakk's proposal on his website and/or watch the press conference on his YouTube channel.