Taxation Troubles and the Tug of War Over Gig Economy Regulations in Hennepin County

Are the taxes we pay in Hennepin County serving us or simply slipping through the cracks of government spending? Today on HuttCast, I, shine a light on the financial weight that rests on the shoulders of our local taxpayers. Feel the pinch as we explore the layers of taxation, ranging from transportation to your latest online purchases. Hear my take on the effectiveness of our tax dollars—particularly when it comes to public transport—and whether the light rail is more of a burden than a benefit to our community.

The gig economy is under the microscope as Minneapolis tangles with Uber and Lyft, setting minimum earnings for drivers. There's no guest to soften the blow; instead, I lay out the reality of what this means for our drivers, our wallets, and the future of ride-sharing. Strap in for a ride through the consequences of government intervention, and why Minneapolis's latest regulation might be driving in the wrong direction.

As the episode draws to a close, the conversation steers towards the crossroads of innovation and regulation with a nostalgic glance at the straightforward approach of political figures like Reagan and JFK. I'll remind you all how the power of the vote can steer the course of our governance, urging you to become a torchbearer for pragmatic change. So bundle up, stay informed, and let's navigate this blizzard of bureaucracy together. Remember, HuttCast is here to turn up the volume on your voice.

OH EDDIES WHISKEY BOURBON SAUCE
Oh Eddies Sweet Whiskey Bourbon Sauce is guaranteed to step up your next barbeque. Made in Minnesota

Gene German
Certified Firearms Instructor - Minnesota, Wisconsin, Illinois, Florida

Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.

Transcript

Speaker 1: 0:10

Secretly recorded from deep inside the bowels of a decommissioned missile silo. We bring you the man, one single man, who wants to bring light to the darkness and dark to the lightness. Although he's not always right, he is always certain. So now, with security protocols in place, the protesters have been forced back behind the barricades and the blast doors are now sealed. Without further delay, let me introduce you to the host of the podcast, Mr Tim Hutner.

Speaker 2: 0:45

Thank you, Sergeant and Arms, you can now take your post. The views and opinions expressed in this program are solely those of the individual and participants. These views and opinions expressed do not represent those of the host or the show. The opinions in this broadcast are not to replace your legal, medical or spiritual professionals. Happy Sunday. Today is 3 24 24. That's right, 24, 24. And on HutCast it's going to be a snowmageddon in the underground bunker, Undisclosed location, of course, but if you look around and watch the weather forecast, holy cow, we got some snow coming. Topics for today are going to be taxes, Minneapolis, the transportation tax. I don't know if any of the other cities have this, but oh yeah, that's a conversation. Uber, Uber and Lyft Minneapolis, Again, common theme. Stand by HutCast, we'll be right back.

Speaker 2: 1:48

Buying a gun is no ordinary purchase. Whether you're a hunter, competitive shooter or self-defense is your priority. There are many kinds of guns and many kinds of training programs. You use your brain all the time. You will really need to use your gun. Before you find yourself in a situation where you need to make a critical decision, make sure your training is the best you can get. It could be the difference between life and death, or freedom or detention For the best quality training, check out PermitToCarryus. If you live in Minnesota or Wisconsin or even Florida, give Gene German a call 612-388-2403. That's PermitToCarryus. Call Gene German at 612-388-2403.

Speaker 2: 2:47

Local sales tax and use. This is what I mentioned in the pre-roll, In addition to the 6.875 Minnesota state sales tax, use taxable retail sales. Taxable retail sales that means your stuff you buy eBay, Amazon, whatever that is. You're getting nicked on it. 0.15, Annabelle County Tax is all in the system this year for the ballpark. It has in parentheses on their website Ballpark Okay, Now.

Speaker 2: 3:25

0.50, Annabelle County Transit Tax. Is that the tax we're talking about? I don't know. I mean, they take your pick at what. Do you call it? Transit tax and the 0.75 metro area transportation tax, effective October 1st 23. Another one is a 0.25 metro tax for housing, effective October 1, 23. Well, I'll tell you what we got a whole lot going on here, All because we live in a county called Hannibal Now I don't know where you are in life, where you have your things, but I'll tell you what. You got to be wondering what's going on. So here's more of this that we're going to talk about. We have a call the local sales and use tax, which we're pretty follow through. Mostly we do the job.

Speaker 2: 4:14

For sure we do the job. We just want to make sure that everything gets paid in its fair quote unquote share. Local sales tax and use. In addition to the 6.875 Minnesota sales tax and use, retail sales in Hannibal County or to a destination in Hannibal County are subject to the following local sales tax use laws, which, okay, you know we get it where there's things that you pay for. Here's what they didn't tell you in the last cycle. Here's what they threw in things for you, as if you guys are listening. Local, you'll get it. If you're far away, you know you got to got your own gig and we're going to put point one five for Hannah McCowney tax ballpark. Not sure which ballpark it is, I'm thinking it's one of the big ones. They want to build a new one. I, you know. I don't even know, but it's point one five again on top of 6.875.

Speaker 2: 5:05

Hannah McCowney transit tax. Okay, for you guys who take the light rail, the LRT, it should be funding itself by now. Oh wait, it can't Because no one's taken that thing. It was a waste of time and money, but hey, nonetheless, we now get to pay for everybody who doesn't want to ride on it. First off, your head of downtown. More luck to you. I prefer not to be anywhere near downtown, but if I'm going to go downtown I'm going to do it on a felony train versus a I don't know. I don't feel safe on that is my opinion.

Speaker 2: 5:39

Henneman County transit tax. Point five zero, it's a half a percent. And then we've got another one, called point two five metro area tax for housing effective. If no number, no, never. First, oh, excuse me, effective October 1st 2023. Area tax, metro housing effective. What are we paying for in that? I'm sure they're online. I'm sure that they went well out of their way to teach you what you're paying for. Oh wait, no, you're just the cash cow, all right. And the one for the reason I am actually doing this here is called the metro area transportation tax, effective October 1st 2023.

Speaker 4: 6:17

For you who doesn't know.

Speaker 2: 6:19

The metro area tax, effective transportation is attached to a policy sales tax, your sales tax. Okay, if you live in the Hennepin County metro area and you want to buy your software what have you on eBay, you're gonna be subject to that new tax and that tax is supposed to be associated to anything over $100. And here's what I'm not sure about is we have that tax and it's attached to a $100 up limit. Imagine what you're paying for if you're buying an expensive something being shipped in. That's right, the 6.875, the 0.15, the 0.50, the 0.75, and the 0.25. Most of that tax is the metro area transportation tax, effective October 1st. And you're thinking to yourself why are we paying this If I want to order something off at eBay?

Speaker 2: 7:13

and have it sent in, that you're gonna get nicked on this. Oh yeah, they're gonna attach it. Now here's another one and I'm still doing the research on it Kind of attached to this here deal. It's the delivery charge tax. Okay, I'll break it down as simple as I remember it from the conversation I had from somebody I cannot disclose their information name from. But let's say you buy an Uber and it costs you $200 to wherever you go. Well, it's subject to that tax because, a it's a sale that was happened in Hennepin County. B it was attached to where the purchase took place, because if they picked you up somewhere in Hennepin County and it's over $100, you get nicked. Let me break that down again for you. Let's take Uber or the pitcher. I want to buy eBay stuff. Again, I spend $199.99 on something. That tax over $100 gets nicked to your transportation. That fee it's a delivery charge. It didn't have nothing to do with going to Hennepin County, it came through kind of Hennepin County.

Speaker 2: 8:17

So here they are nicking you on the way in nicking you, but when you made your taxes, when you, when you created your check, your W2s, etc. Well, I'll tell you what. There's kind of a whole lot going on here and we've had a lot of taxes without representation for a long time. But when is this line going to be any clearer for people Now?

Speaker 2: 8:37

everybody pays too much tax or you collect tax One of the two or you're on the public roll dole and you're collecting everything and you don't care what happens out there, as long as it's working your way. Eventually, you're gonna come off that roll and you're gonna say, hey, I don't want to pay this and you probably shouldn't.

Speaker 2: 8:57

It's different when you're self-employed versus when you are employed, because when you're self-employed, not only are you paying your portion of the tax, you're paying a part of the employees portion of the tax, and all that stuff goes into the same same pockets except yours. Now you as an employee should kind of be upset with this. If an employer can afford to pay you X amount and they ain't factoring in they being a county of some sort of municipality, they're not factoring in that what I pay them comes out of your pocket. I can't afford to pay you more. I have X amount for this position. So Henry McConnor wants to take 0.5, or your county wants to take 0.7 or whatever that is. So taxes do affect you. You just probably haven't put it all together, saying hold on here.

Speaker 2: 9:46

You keep taxing the snot out of these companies, big, little or small, and they're just gonna go elsewhere. Ie like not downtown Downtown Minneapolis had a lot of major corporations pull the pin on them. I don't blame them in a bit. Absolutely absolutely wouldn't be there. On top of the increasing crime rate that you can't control, On top of all the who wants to be downtown anymore. If you're that people, good for you, Stay down there. No common sense business is gonna end up down there going hey, we should, we'll fight the crime, we'll fight the taxes, we'll fight no, no, no, no, no. So what I'm telling you guys is pay attention to what you're paying and who you're paying it to.

Speaker 4: 10:26

And remember it happens in a ballot.

Speaker 2: 10:29

Of course, the ballot's kind of tough right now because our state and Senate and everybody's got this whole way of voting. I won't say which letter we're involved with, but yeah, they're gonna see how much they're gonna throw so much at the wall, so much crap, and see what sticks. That's still ain't right.

Speaker 2: 10:47

You shouldn't be saying, okay, let's see what we can get away with. Their job is not to get away with it. Their job is to represent us, the people I don't know. There's a whole lot of not common sense in our government these days.

Speaker 2: 10:59

And you know, not all of the people in our government are crazy Not many, okay, maybe there's a couple, but you can get my point right. There's just so much uncommon sense and in our next segment here I'm gonna prep you for this one, because this is like this totally floors me. It should floor you. One when a county, a city, a government has to do with the free enterprise of our system. Oh yeah, like I said, I'll cover that in the next segment. I wanted you all to understand what was going on with this tax stuff is. If you look at the big picture, it is so incredible. You know, you always say well, what is a, what is a local tax use? Well, in a nutshell, the local tax use is a similar to taxes that is collected on Purchases that are taxable, that are taxable who decides that? But are not taxed at the local state rate, for example, out of state purchases hmm, so Hennepin County has the authority to grab that and State of Minnesota don't.

Speaker 2: 12:01

In addition to Local tax on certain purchases made within the county, a local tax use is applicable To taxable purchases made outside of Hennepin County residents and businesses. So the point seven, point five, or one point 1.6, 1.6 percent of your, your tax dollars goes to.

Speaker 4: 12:22

Hennepin.

Speaker 2: 12:22

County, at least in this and I'm kind of gov dot us all. Certainly give them the credits on this. It's a, I don't know there's a. There's a lot being, there's a lot, a lot of stuff that just needs to be gone away with and and I get it I mean stuff has to do, get paid for. But eventually we got to stop throwing good money after bad. I ER, lrt, I ER yeah. So again, people, I appreciate you tuning in. What I'm gonna do is I'm gonna roll us over the next segment and we're gonna have a conversation about the Hennepin County. You know, let's make this a correction.

Speaker 3: 12:58

Minneapolis and their way Overreach of their authority, so stand by this grill and season, take your taste buds to the next level. The sauce That'll change your barbecue forever. Oh Eddie's whiskey bourbon sauce is going to be at the Anoka County Fair. Oh Eddie's whiskey bourbon sauce is all about that split second when the tender meat and delectable sauce touches your taste buds. Don't believe me. Chef Richard Cooper is bringing oh Eddie's whiskey bourbon sauce to the Anoka County Fair, so you can taste it and become a believer yourself. Oh Eddie's whiskey bourbon sauce the sauce that's worth the wait.

Speaker 2: 13:36

All right, welcome back to it cast. So we got some stuff going on and I want you all to hear it. But before I start, I'm gonna start with the proper credits. This is a. This is an article out of the CNN business. Well, cnn business in New York. It's about Lyft and Uber and and all the All the companies that actually work with a subcontract, but yet not a subcontractor. So, in order for you to understand, it is, if someone works for you, they are an employee. If someone works at their own Rate, pace, volume, on time, off time, whatever that is, and they just you call them in for something that's called a subcontract. Now, those are the differences between a employee and a subcontractor. Now, knowing that that, with the CNN article, I'm gonna have AI Bob Give you an information of kind of what's going on with it. So we're gonna start with a Well, what he says about it and what their article reads and again, this is credited to CNN business and they are Jennifer Henderson and Romash Maraf contributed to this report, so they actually made this, but it rang true For just a moment to say, okay, here and when we're done with this, I'm we're gonna talk about why Government shouldn't be involved in business Hands down.

Speaker 2: 15:00

You heard, you heard a red government should not be involved in how businesses Operate, how they do their job, how they do anything, because, like typical government, I'm here from the government, I'm here to help. You never want to hear that. Ever, ever, ever, ever. So stand by. We're gonna, we're gonna play this AI Bob's gonna read this off to you and then we're gonna talk about why, what and where IE Minneapolis getting involved.

Speaker 4: 15:28

Stand by. We support a minimum earning standard for drivers, but it should be done in an honest way that keeps the service affordable for riders", said a Lyft spokesperson. Uber said in a statement obtained by CNN that it's disappointed the council chose to ignore the data and kick Uber out of the twin cities, putting 10,000 people out of work and leaving many stranded. Mayor Jacob Fry, a Democrat, said he supports a minimum wage for rideshare drivers, but opposed the ordinance because it didn't factor in a Minnesota state study that analyzed how much drivers should be paid. Everyone wants to see Uber and Lyft drivers get paid more, but getting a raise doesn't do a whole lot of good if you lose your job. There will be a massive impact felt by our region. A Lyft drivers lounge in San Francisco, california, us. On Tuesday, may 2, 2023. Lyft Incorporated is expected top release earnings figures on May 4. Photographer David Paul Morris slash Bloomberg via Getty Images. Related article A Typo and Lyft's earnings release sends stock soaring. Briefly, the ordinance mandates rideshare drivers make at least $1.40 per mile and 51 cents per minute within Minneapolis. However, the analysis Fry referred to showed lower numbers 89 cents per mile and 49 cents per minute to make minimum wage. We shouldn't be afraid of data. We should be embracing it. We shouldn't be ignoring studies that come out. We should be utilizing them and creating the best possible policy. Fry told WCCOTV. The mayor is imploring local politicians to come up with a solution before May 1. The rideshare services say that user prices would double if they stayed in the city. Minneapolis is debating the minimum wage as gig workers across the country are advocating for fair wages and job benefits.

Speaker 4: 17:09

Cities and states have attempted to pass legislation in recent years amid the growth of the gig economy or freelance work through apps like Uber and Grubhub, but have generally been met with fierce opposition. Last year, minnesota Governor Tim Walls, a Democrat, also vetoed a bill that would have set a minimum wage for rideshare drivers, saying it would make Minnesota one of the most expensive states in the country for rideshare. Lyft previously told CNN that the bill would be detrimental to drivers, who would ultimately earn less because prices could double and only the most wealthy could still afford a ride In 2020,. California passed Proposition 22, which was backed by more than $200 million from the most influential gig economy companies. The controversial ballot measure allows Uber and Lyft to treat drivers as independent contractors rather than employees.

Speaker 4: 17:55

While it was a major win for Uber and Lyft. It did include a minimum earnings guarantee, excluding the time a driver spends waiting for a gig. Last June, new York City announced a new minimum pay rate for food app delivery workers amid the rise in the use of services like Uber, eats and DoorDash. Since the pandemic, uber and other food delivery apps sued the city in July, maintaining that the law would hurt delivery workers more than help them. Cnn's Jennifer Henderson and Ramesh Amaroof contributed to this report.

Speaker 2: 18:24

All right guys, how'd you like that one? That one's kind of a thing and a half here's why we have a government a city of Minneapolis, the.

Speaker 2: 18:37

I don't even know how you describe these guys. Do you describe them as the Moss-Esley Contina, the one that you see in Star Wars, where everybody is a different species and I don't even know these guys are. They're either mind, they're crazy, but they're out there and they're telling you how that Uber and Lyft is going to, first of all, pay a certain amount of money. And at what point does any government entity ie your city council, ie your state of whatever tell you what? There's going to be a minimum order, a minimum finance of what they're going to make. I mean, I understand they're trying to play hero and save the world and life's good and what have you. But who put them in charge? You voted them in.

Speaker 2: 19:32

So the people that voted them in are the one that don't work for a living, who want to tell everyone else how to live for a living, to what they can make for a living. A whiskey, tangle, foxtrot's going on here. Come on, guys. This didn't even make any sense. So the people that don't work for a living, who vote for a living, are telling the people who are out there actually working for a living the Lyft drivers, the food deliveries, the door. Dash is what they're going to do with their companies.

Speaker 2: 20:08

I can only imagine there's about a half a dozen, a handful of state and federal laws that these guys are barking on to put restrictions on these companies. Now I would say, yeah, if you're putting toxic dump in the world and you know they're coming out and people your neighbors are being turned green and growing six legs and okay, I see that, I get that that's for the good of the community. But like AI Bob says, and like Uber and Lyft, and they say, look, if you impose this, only the rich people can afford to do this. Now, we had a little conversation in our last episode well, I'm sorry, our last segment about who can afford to do what. And if you got the only rich guys riding the Lyft and Ubers, I guess you don't need a LRT, then light rail transit, like I think you can get rid of the buses now too.

Speaker 2: 20:59

As long as we're doing this, let's get retroactive and turn everything off. Yeah, let's do that. Let's go back and say, well, met Council, we don't need your help anymore. We've enacted a plan that will save us all from ourselves and you can go back. And now you, we don't need you where we're good, let's turn that off. An appointed position by who knows who Put terminus on that program.

Speaker 2: 21:31

All right, so you got a government agency, a city, not state, not the feds, not God, almighty, not Allah, not whoever you pray to, coming down and saying, hey, luboriffed, we're going to do this and you're gonna do this, and if you don't like it, we're gonna stop you as of May 1st 2024. Too bad, you don't like it, but here's the, here's the caveat that people They've said this From this maz esli cantina. You know that's the bar in Star Wars, first one, where it's a it's dimly lit tavern known for strong drinks, hot tunes and occasional outbreaks of shocking violence. I think that describes Minneapolis pretty well. You heard me, the maz esli cantina. Yeah, look it up, it's. It's funnier and snot it's like, yeah, that kind of sounds like Minneapolis Could be wrong.

Speaker 2: 22:30

You might be wondering why I'm banging on Minneapolis. Well, because you know, sometimes there's common sense and there's these guys. Everybody around the bar's got their the third antenna or an eye, or a bing bong or whatever. Whatever they're made of Making decisions For us. Is that who you have in your government agencies wherever you are in the world? Again, this is a global show. I know I'm picking on Minneapolis and us at this time because sometimes you just gotta sit back and go. I don't get it. If that's what you got going on.

Speaker 2: 23:06

You need to fix this at your voting poll. Undo this, turn this around, put common sense back in there. Where's the days of Reagan? Where's the days of JFK? Where are the days of the common sense guys? Who says regards of your political affiliation? What makes sense makes sense. It's okay. Circle back to what makes sense. I Don't want a government in my business. I don't want them telling me how to pay who in for what. You shouldn't want them to tell you how to pay your Uber driver. The Uber driver shouldn't want the city To be telling them what they can and can't do or what you're not going to be picked up in in the city limits?

Speaker 2: 23:54

Who's going to watch that? At what point Is the city of Minneapolis, murderapolis, going to get into Uber and lifts Communication network, their, their hub, their their dispatching system there? How are they going to do that and say, um uh, you guys are picking up fairs where you shouldn't be? Now, here's where this comes back to. I'm Minneapolis. My lrt is a miserable disaster. My bus ridership is down. They don't pay when they get on there. They jump the gate, they get in there. It's a cesspool of crime. The lrt and nobody wants to ride them. So they'll uber and lift. They'll pay the 10 bucks, 20 bucks, 50 bucks, I don't even know. I don't even uber, so I'm guessing I'll pick an uber before I take an lrt.

Speaker 2: 24:54

Wait a minute. Met councils crying to the city of Minneapolis our, our dollar. We got a high e the taxes that we just talked about in the previous segment. We got to fund that. Okay, we're funding it. We're still miserably failing as a city, as a state, and we keep voting that shit in. So if I was the city of Minneapolis and I didn't want any competition, what would you do? What would you do to shut that competition off? Oh wait, let's impose some kind of a crappy snafu On your opposing people. Your, your people that um Are against you. Let's see light rail. You take out the opposition or the competition and all of a sudden, here, what's left? People have to get there somehow. Oh, now you're infringing upon my rights of freedom. You guys getting this. Are you following it? Are you seeing the big picture? Because I am.

Speaker 1: 26:01

I don't like the competition.

Speaker 2: 26:03

How's it going? One goofy thing Never cheat the IRS. They don't like the competition. Yeah, that's what's going on here. I don't know. I'm seeing some mighty different things here than most people are seeing. Maybe there's not choosing to pay attention, which is okay. But then listen to some guys who you do trust and you do align your methods with the way you talk, the way you interact. I mean, sooner or later you've got to have somebody to look forward to or with and say you know, I don't make no sense either. So here you have it.

Speaker 2: 26:41

State of Minnesota has their sets of rules. Lrt has their sets of rules. Minneapolis has their sets of rules. How many rules we got to have and how many times we need them to tell us the rules? The Met Council has their sets of rules. I don't know. They got enough rules for a while. Common sense ain't common enough. But to impose a tax to limit the people who are coming in, to force them to pay a certain amount when you're subcontracting that's the official rule there. Now they are subcontracting to UberLift or Eats or Dordash or whatever it is their faction might be. Now we're going to tell our subcontractors what they should make. Oh boy, you guys, you got to listen to that that doesn't even sound logical.

Speaker 2: 27:51

So what do you do then? Who's in control? It ain't you. Is it the Mosley-Elsie Cantina or Moss-Esley? I don't even know. I can't even pronounce the second name at Moss-Eisley. If anybody knows that, send me an email. Or, on hate book, give me an hate book message. Mos-eisley Cantina Again, that is a dimly lit tavern known for its strong drinks, hot tunes and occasional outbreaks of shocking violence. Man, does that sound like Minneapolis? So, pick your favorite character, send him on in. Let's see what that's going on there. And you know, I can't squeal enough about these guys. I don't even know where to begin. On half of these guys you just sit back and go oh, come on, guys, there's got to be something better you can do. Please do something better in life, keep me out of it.

Speaker 2: 28:53

So, hi cast, we have a lot of things going on locally too and some breaking news this morning that started last night. Can't talk about them quite yet. I would certainly love to have a conversation about it, but we got some people locally all upset about how things get out in the news. Some call it inaccurate, some call it wrong, but when someone else says that it's all accurate and right, hmm, apparently they forgot who voted them in. Interesting how that is, but hot gas is going to pull the pin. We've had 15 minutes and 58 seconds and this was 16 minutes.

Speaker 2: 29:36

Okay, and thanks for all listening. Sorry about the delay in some of my posts. Watch the hate book site. We've got a lot of stuff going on there. We're still seeing a lot of people across the nation, across the world. They're listening in, appreciate every feedback. Again, I can only get back to so many of you and in so many languages. I can only talk to binary English, so, being those two, if you can, other than that, I'll try and Google lies it and respond if I can. So hot cast is calling it a day in my underground bunker location getting hammered on by snow. Be well, everybody, and remember you run the government. The government does not run you and that's a wrap for hot cast. Hot cast is again a pragmatic approach to seeing things how some people see them. If you like our show, give us a thumbs up on the Facebook site, again for hot cast. Thank you again. Have a wonderful evening.