MN Dem candidate Bakk: Tax clothing, cut sales tax

A key legislator says he wants to expand the state sales tax to clothing and use the revenue to reduce the budget deficit and pay off a school funding shift.

DFL Senate tax committee chairman Tom Bakk of Cook outlined legislation Thursday that he said will also reduce Minnesota's budget deficit by $257 million in the first year and repay schools more than $120 million.

Bakk said in the second year the overall sales tax rate would drop by one-quarter of one percent.

""Previous governors since back to when I was in school have always, when the state has had a financial crisis, been willing to consider some revenue," Bakk said. "I would argue this isn't even a tax increase. It's actually a cut."

Bakk, who's also a DFL candidate for governor, said the change would make the sales tax system more progressive.

""People with higher incomes buy more clothing and more expensive clothing," he said. "And lower income people, the sales tax is generally regressive, and they just don't buy as much clothing and they buy less of it."

Bakk said he does not have DFL leadership support for his bill, and he's still looking for a House author. Gov. Pawlenty has repeatedly said he won't support any tax increases.

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