One thing that’s coming Minnesotans’ way is a tax increase. I predicted here that we’d see an income tax increase on “the rich” as well as a sales tax increase because the DFL will pass legislation that starts taxing clothing sales. This article, though, says that a tax increase isn’t a guarantee, even with the DFL running the legislature and a DFL governor. That’s pure fiction and Ann Lenczewski knows it:
Gov. Mark Dayton is expected to launch the discussion in January when he unveils his plan for making the tax system fairer and simpler. But Dayton’s long-promised income tax increase on top earners could be a tough sell, even with Democrats now in control of the House and Senate.
Tim Pugmire should know better. He should know that that’s fiction. In 2006, Mike Hatch ran on an agenda of increasing spending without raising taxes. Here’s what Hatch said then:
He cast Pawlenty as too stingy with education, responsible for large class sizes and rising college tuition. He tagged him for an inadequate response to soaring health care costs and the emerging biosciences industry. He promised more state investment in those things. Significantly, he said, “we can do this without raising taxes.”
I didn’t believe the DFL then. I don’t believe the DFL now. The DFL has to pay to their political allies that contributed to their campaigns. The DFL’s allies didn’t do this out of the kindness of their heart. (First, it’s impossible to think Eliot Seide has a heart.)
There are government agencies to restaff. More importantly, militant environmentalist organizations are demanding that the DFL beef up the MPCA and the EQB. It isn’t just anyone demanding these things, either. It’s Alida Messinger making these demands. As the majority owner of the DFL and ABM, their messaging machine, what she demands, she gets. And she’s demanding that these environmental agencies get beefed up.
Next up to the trough will be mayors demanding that their LGA be made whole again. They’ll be led by Duluth Mayor Ness, R.T. Rybak and Chris Coleman. And there are lots of mayors who will be insisting that their LGA be restored.
Frans said that almost everyone he talked to believes the tax code is out of date, and they are particularly concerned that property taxes are too high.
“As I’ve been taking the three-legged stool around to describe the three major sources of revenue, the property tax, the sales tax and income tax, people are concerned that the property tax leg now makes up about 40 percent of the three different major sources of revenue,” Frans said. “They believe that’s too much, and it’s something we need to address.”
Frans said a comprehensive approach to tax reform would also include a recalibration and broadening of the sales tax. In addition, he said, Dayton still wants every Minnesotan paying his or her fair share of income taxes. That proposal, which first surfaced in the 2010 campaign, would target the wealthiest 2 percent for an increase.
One reason why property taxes make up 40% of the revenues is because idiots like R.T. Rybak make terrible spending decisions, then pass the buck on through higher property taxes.
Another reason why is because Minnesota’s economy isn’t booming like it should. If we had a flourishing economy, like North Dakota’s, income tax revenues would make up a bigger share of the revenues. Instead, our biggest employers are the university system, the federal government and state government.
That’s way too much government to pay for — except in the minds of Gov. Dayton, Alida Messinger, the DFL and their special interest allies.
Comments welcome at Let Freedom Ring.