How Will You Vote?

At the end of February, Duluthians will go to the polls for a special referendum. The effect of this vote will be nothing more than a stamp of approval to the City Council for their plan to raise the Food and Beverage tax by .75%. The State Legislature will still have to pass a law to allow Duluth to go ahead with the imposition of this tax. The Governor has stated he wouldn't support this tax unless it went to the voters. He will still have the opportunity to veto it.

That being said, the marketing machine has already been put into motion and the seduction of Duluth appears complete with many supporters claiming this is a "no brainer". If it is such a no brainer, why is it so difficult to impose such a tax? The answer is, if there aren't some hoops to jump through, tax and spend politicians all over the State would be raising local option sales taxes to pay for numerous pet projects.

The thing we all must think about is how we feel about our taxes already. I hear complaints from all political and non-political people of all pursuations about how high our taxes are in Minnesota. We have slipped from the third highest taxed State in the Union to about fifth or sixth. This is still a dubious distinction. The DFLers will use cliches like we have a better State and we're willing to pay for it. Conservatives on the other hand continue to try to hold the line and limit or reduce taxes due to the undeniable fact that taxes impede growth, discourage and reduce private investment into business.

What is interesting about this tax is, conservatives appear to be on board. Why? The Marketing has been very effective. The scare tactic that the UMD Bulldog hockey program would be forced to re-locate to the UMD Campus has been used but is that really true? Well, my question is, if they re-locate to the UMD Campus, how does that: 1. Reduce the cost 2. Increase available funding for the construction of a new hockey stadium? This certainly appears to be a ruse that the whole of Duluth seems to have fallen for.

I feel as though I may be getting redundant but the citizens of Duluth have been sold a bill of goods that may not be what they appear. We will be shoe-horning another huge building into a footprint that is not large enough or accessible enough for the buildings currently situated there.

My final point on this subject that I will likely explore again both pre and post-vote is, if you feel taxes here are too high, yet you vote yes on this referendum, you must count yourself among those who will lose the ability to complain, with any integrity or credibility, about Duluth being anti-business and taxed to heavily.

If you are a proponent for business and growth but you vote in favor of a tax that will inevitably harm at least a handful of businesses you have to examine your motives. This tax will reduce the amount of money in public circulation by around a million dollars every year or a total potential economic impact of 5-7 million. If we could see fit to reduce taxes, increase business investment and put this project off for five years we could likely allow some of the existing food and beverage taxes to finally sunset. In essence, by waiting, just like a family on a limited budget or a business on a limited budget, with diligence and discipline, we could cover the City match with no net tax increase. If you vote yes, don't dare complain about higher taxes.