[Congressional Record Volume 141, Number 80 (Monday, May 15, 1995)]
[Senate]
[Page S6647]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                       MINNESOTA TAX FREEDOM DAY

  Mr. GRAMS. Mr. President, yesterday, on May 14, 1995, Minnesotans 
marked two annual occasions: one that millions of families look forward 
to each year, and one that millions of Minnesota taxpayers await with a 
mixture of anger and frustration.
  First and foremost, of course, was Mother's Day, the day we all honor 
our mothers for the love and support they have given us.
  The second, less well-known but equally significant event was 
Minnesota Tax Freedom Day, the day Minnesotans quit working to pay 
taxes at the Federal, State, and local levels of government and begin 
working for themselves. Every dollar my constituents have earned so far 
this year has gone to pay taxes. For a total of 134 days, Minnesotans 
have been working for the government; 85 of these days were spent 
paying off Federal taxes, while the remaining 49 days were spent paying 
off State and local taxes.
  Tax Freedom Day comes much later in the year to Minnesota than it 
does to the Nation at large, which means Minnesotans spend longer than 
most Americans working to pay off their tax bills.
  For the average American taxpayer, Tax Freedom Day is on May 6, but 
Minnesotans must work more than a week longer for Uncle Sam and his 
cousins at the State and local levels.
  My constituents are encumbered with the sixth highest tax rate in the 
country. The only States whose Tax Freedom Days come after Minnesota's 
are Connecticut and New York, who both mark Tax Freedom Day on May 24; 
Washington, DC, and New Jersey, on May 18; and Hawaii, on May 17.
  For 2 years, the tax load borne by Minnesotans has remained constant, 
and Tax Freedom Day has fallen on the same day, May 14. But sadly, a 
lot has changed since President Clinton's 1993 budget package.
  In 1993, Tax Freedom Day in Minnesota was May 9. In effect, the tax 
increases imposed in President Clinton's 1993 budget have forced 
Minnesotans to work an additional 5 days just to pay off those new 
taxes.
  These 5 days could have been spent on a family vacation, but there is 
no time for fun when you are working to pay off the Government's 
spending splurges.
  The average per capita income of Minnesota is $24,403, 36.6 percent 
of which goes to pay taxes.
  Translated into dollar terms, the average annual tax bill for every 
Minnesota taxpayer this year will be $8,926, or over one-third of their 
hard-earned income.
  Americans face a veritable cornucopia of tax burdens in their day-to-
day lives, overflowing with the income taxes and payroll taxes which 
represent the largest component of the average American's tax bill.
  In addition to these more visible taxes, the cost of nearly all goods 
and services are inflated by sales and excise taxes. There are property 
taxes, estate and other business taxes, and let us not forget the 
corporate income taxes which are passed along to consumers and 
employees in the form of higher prices and lower wages.
  The perverse thing about our current progressive income tax system is 
that as national income increases, the tax burden increases along with 
it, more than proportionally. As a result, economic contractions tend 
to reduce American's tax burden while economic expansions tend to 
increase it.
  It makes no sense that taxpayers should be penalized for robust 
economic growth by extracting more money from their paychecks.
  This is why I support tax cuts--real tax cuts--that help American 
families keep more of what they earn. The $500 per child tax credit 
goes a long way toward that end. Middle-class families could save more, 
or they could spend more--they would be given the freedom to do 
whatever they want with their money because it belongs to them.
  We may never see Tax Freedom Day coincide with New Year's Day or even 
Valentine's Day, but let us face it: We are about to begin debate on a 
new budget resolution, one that can counteract the onerous effects of 
Clinton's package of tax hikes 2 years ago. Let us not miss this 
opportunity to offer tax relief to America's families. Let us ensure 
that Tax Freedom Day comes a lot earlier next year than it did last 
year.
  Mr. President, I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. MURKOWSKI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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