MN candidate: Tax clothing, cut sales tax - WAOW - Newsline 9, Wausau News, Weather, Sports

MN candidate: Tax clothing, cut sales tax


ST. PAUL, Minn. (AP) -- Democratic gubernatorial candidate Tom Bakk wants to extend Minnesota's sales tax to clothing starting this summer.

The Senate Taxes Committee chairman would use the money raised to whittle down this year's budget deficit by $257 million. After that, the money would pay back schools for last year's delayed state aid and reduce the overall sales tax rate from 6.5 percent to 6.25 percent.

Bakk says his bill would make the sales tax fairer because those with higher incomes spend more on clothes. He is one of 13 Democrats running for governor.

Republican Gov. Tim Pawlenty says he is not interested in Bakk's plan. He says clothing is a basic necessity that shouldn't be taxed. He says Minnesota's tax-free clothing gives retailers a competitive advantage over neighboring states.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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