The Association also believes that to the degree that the majority of voting citizens is shielded from the cost of government spending, they have less incentive to be involved in exercising their responsibility for government oversight and control. Minnesota s state and local fiscal system, designed primarily to equalize revenue resources of local governments around the state, has the notable side effect of shielding, or protecting, the majority of voters from the cost of government programs. Less than one in three dollars spent by local school districts come from their own voters. A system of taxation that inoculates the majority of voters against the burden of financing government spending. A tendency to view taxes on business as morally superior to taxes on individuals.
Economists agree that business taxes are always passed on to consumers, workers, or investors.
Ultimately, all taxes are taxes on individuals. The only real difference between business taxes and individual taxes is their pattern of incidence on individuals or households. What makes business taxes seemingly more attractive to some legislators is the fact that individuals vote and companies don t, and that most individuals are not aware that they also bear the burden of business taxes. In a sense business taxes are taxes on people that are hidden from citizens view. We acknowledge that the wide use of federal and state aids has been of material assistance in solving many local financial problems.