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Red Wing Shoes puts $20M warehouse expansion on hold

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Red Wing Shoes Co. is among Minnesota businesses worried about some of the tax increases approved by Gov. Mark Dayton and the DFL-controlled Legislature last month, the Star Tribune reports.

Dave Murphy, president of the southeast Minnesota shoemaker, is concerned about a controversial sales tax on warehouses and storage facilities. Minnesota Revenue Commissioner Myron Frans says the new law only applies to firms that don't distribute their own products.

“I agree we needed to find more revenue,” Murphy told the newspaper. “But I don’t believe solving a $650 million deficit with $2 billion in additional taxes is a ‘balanced approach.’ I’m willing to spend more, but I think they should have looked harder at cuts and innovation.’’

Red Wing Shoes has since delayed plans to invest $20 million in a new distribution center in its hometown, according to the Star Tribune.

Earlier this month, the Post Bulletin reported the company is wrapping up a multi-year, $18 million renovation-and-expansion project.

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