DEMS: TAX IT ALL! What the heck is Worldwide Combined Reporting?

State Democrats are finding creative ways to raise taxes so they can fund their growing government, and we mean really creative. The latest money grab? The House DFL tax proposal calls for something called “worldwide combined reporting.” What does it mean?

Worldwide combined reporting would require businesses who do work in other countries to count their revenue from their business operations overseas in their taxable revenue here in Minnesota. The change would increase revenue from Minnesota’s corporate franchise tax by $1.2 billion over the next four years.

What’s the big deal? No other state or even nation does this! Democrats hardly know how this will truly affect Minnesota businesses, they are more concerned about balancing their bloated budget. If a $19 billion budget surplus and $10 billion in tax hikes aren’t enough, what will be?

This move by Democrats could certainly drive businesses out of Minnesota, taking jobs with them. Caterpillar fled from its home state of Illinois after 100 years because the tax burden was too much. Businesses in Minnesota seem to already be taking countermeasures in preparation for impending legislation. 3M, based in Maplewood, recently laid off 1,100 employees from its headquarters.

So what does this mean for you? We don’t fully understand all of the unintended consequences but you have to wonder why someone would bring your business to Minnesota when it’s the only state taxing your revenue this way.

This worldwide combined reporting tax hike proposal comes completely out of left field, but Democrats are desperate to fund their ever-growing government programs. We wonder what creatively devastating tax idea they will come up with next.