Archive for the ‘Paul Thissen’ Category
Don Davis’s article is this weekend’s must reading.
Overall, much of the $2.1 billion, two-year tax increase comes from the state’s highest earners and smokers. Dayton made the point that if property taxes rise 2 percent statewide, that would far less than the 83 percent they have gone up in the past decade. “I think that we did the job of delivering property tax relief,” House Speaker Paul Thissen, DFL-Minneapolis, said.
Democrats say that higher taxes usually mean better services.
That’s fantasy. Higher taxes usually means mayors feel less inhibited to spend significantly more money on things their cities don’t need. Considering the fact that the same Tax Bill that raised every Minnesotan’s tax bill was used to appropriate money for a pork palace for politicians. I’d love hearing Sen. Bakk or Speaker Thissen explain how higher taxes and shiny new office buildings mean more and better services for Minnesotans.
I’d also highlight the fact that higher taxes didn’t make MnSure more taxpayer-friendly. Despite the multi-billion dollar tax increase, MnSure still gets weekends and holidays off while Minnesotans scramble franticly to get insured.
“Any tax increase in inherently unpopular,” Gov. Mark Dayton said in a Forum News Service interview. “But it will be a message battle. Republicans will try to say ‘largest tax increase in history’ and we will say ‘the people who have the most are paying it, and smokers.’”
The DFL, aka Democrats, will argue that they ‘taxed the rich’. Republicans will highlight the fact that the DFL also raised taxes on farmers, small businesses and chased a major part of Cargill’s operations to Colorado:
Why Denver? Dan Dye, Horizon’s president and Ardent’s CEO-to-be, said in a statement that the decision “will allow us to offer great quality of life for employees, provide excellent service to our customers and position the business for long-term growth.”
The Democrats’ policies are hurting Minnesota’s economy while piling additional tax burdens on farmers, blue collar workers and small businesses. Couple that with the DFL’s intent to dramatically increase the minimum wage, via constitutional amendment if necessary, and you’ve got the recipe for economic calamity.
Based on what we’ve seen thus far, the DFL’s claim that higher taxes equals better services is spin, not fact. Higher taxes just mean people have less money to spend.
Technorati: Tax The Rich, Property Taxes, Mark Dayton, Paul Thissen, MnSure, Government Services, Tax Increases, Minimum Wage Increase, Constitutional Amendments, Recessions, DFL
This Pioneer Press editorial exposes the DFL’s lie that property taxes would go down this year:
In July, Gov. Mark Dayton said that, for the first time in a decade, property taxes would drop by $121 million statewide in the year to come. But now, Minnesotans are staring at a potential $153 million increase in property taxes, instead, to a total of $7.7 billion.
Yes, that’s a preliminary estimate, and yes, it’s based on the maximum the various local entities could levy; some will come in a tad lower. But any property tax increase is hard to swallow given that legislative Democrats and DFL Gov. Mark Dayton cranked taxes up by $2.1 billion to cover spending increases.
The DFL knew they were lying about cutting property taxes when they made those claims last spring. That was their way of justifying the huge increases of income taxes, sales taxes and other fees.
Republicans repeatedly questioned the DFL’s lies, highlighting the fact that local governments and school boards levied property taxes. They, not the state, set property tax levels. Now that Republicans are being vindicated, what will the DFL do?
The answer is simple. They’ll do what they always do when they’re caught. Led by the Alliance for a Better Minnesota, aka ABM, they’ll lie more blatantly. That’s what ABM specializes in. Without their unprecedented smear campaign in 2010, we wouldn’t have been afflicted by a Dayton administration.
Democrats knew when they were given the gavels in 2013 that they had lots of special interest allies to pay off, starting with big city mayors. The best way to pay them off was through massive LGA increases. Democrats knew they couldn’t sell that massive spending increase to Minneapolis, St. Paul, Duluth and Rochester by telling the truth. They had to sell it as property tax relief.
With that determined, Democrats, led by ABM, said that raising LGA would lead to lower property taxes for Minnesotans. To use Jeremiah Wright’s phrase, the DFL’s chickens are coming home to roost. Few people will be getting bigger property tax refund checks. People living in the core cities of Duluth, Minneapolis, Rochester and St. Paul will see their city budget spending increase dramatically.
Some of that spending will go towards essential government services. Most of that spending will go towards paying off the Democrats’ special interest allies.
Most importantly, the business climate in Minnesota will have taken a turn for the worst. Small businesses will get hit with the higher income tax rates. They’re already getting hit with the B2B sales tax increases. The middle class and working poor are getting hit with cigarette tax increases and with higher prices caused directly by the Democrats’ B2B sales tax increases.
The DFL can’t survive without ever-increasing taxes. Without ever-increasing taxes, they wouldn’t have the taxpayer money they need to pay off their political allies with other people’s money. Anyone who thinks that the DFL is the taxpayers’ watchdog or that they believe in strict accountability of public funds is kidding themselves or intentionally lying to others.
There are some fiscally responsible Democrats. Unfortunately, they’re the exception, not the rule.
Democrats got ridiculed when they ran ads featuring Paul Bunyan preaching the gospel of ‘everyone needs insurance’. This is the most recognizable Paul Bunyan/MnSure ad:
It’s rather sickening to hear the narrator say “Minnesota. The land of 10,000 reasons to get health insurance:, followed by “Welcome to MnSure, the new way to shop, compare and choose…” a health insurance policy. My response to that BS is that it might be a great place to choose a new health insurance policy if it was actually open 24/7.
Yesterday, I was a guest on Dan Ochsner’s ‘Ox in the Afternoon’ radio program. During the interview, I told him about this information:
The Contact Center is closed today, Veterans Day. In addition, federal account and application services are undergoing maintenance and are unavailable, 8 pm Saturday – 6:30 am Tuesday. You can still view plans.
I told Ox about this, too:
Seriously? I just tried to login to the site to view and apply for plans at 10:33 pm on Saturday, Nov 9, 2013 and I got this message:
the system is available monday through saturday, 6 am to 10 pm
please visit us during those hours to apply and enroll
Thank you for your interest in MNsure
Paraphrasing Ox’s reply: That’s the first website I’ve ever heard of that gets weekends and holidays off. My reply to Ox’s reply was simple: Perhaps we’ve discovered the first website that’s represented by a union.
That lighthearted moment aside, this isn’t a laughing matter. Yesterday, I wrote that 140,000 Minnesota insurance policies have gotten terminated as a direct result of the Affordable Care Act, aka Obamacare. It isn’t a stretch to think that a significant number of people who had their policies canceled have chronic health issues. It isn’t difficult to picture a young man with diabetes or a middle-aged woman whose family has a history of breast cancer or a retiree who receives dialysis treatment. Though I don’t have the names of real people facing these situations, there’s no doubt that we’d find people facing these situations without health insurance.
These hypothetical situations transcend politics because they’re life-threatening and frightening situations. If Gov. Dayton, Sen. Bakk and Speaker Thissen care about people, they’d demand that the MnSure website would stay open 24/7 until the last uninsured person has health insurance.
Anything short of that is cheating Minnesotans of the protection that the Patient Protection and Affordable Care Act promised them.
Technorati: MnSure Ads, Paul Bunyan, Health Insurance Exchanges, Affordable Care Act, Obamacare, Tom Bakk, Mark Dayton, Paul Thissen, DFL, Insurance Cancellations, Customer Service, Dialysis, Breast Cancer, Diabetes, Uninsured
“This lawsuit does not contain any legitimate concerns. The legislation authorizing construction of the new legislative building adjacent to the Capitol was included in the public finance section of the tax bill. Public finance provisions have been an established component of tax bills for decades. This legislation is consistent with authorizing legislation for similar construction projects that have been completed under the supervision of the Minnesota Department of Administration. Moreover, it was vetted by legislative counsel and public finance experts at Minnesota Management and Budget and passed by both bodies of the legislature before being signed into law by the Governor.
I fear the only result of this suit will be the waste of taxpayer resources on legal expenses and the potential costs associated with delaying the construction project.
Nevertheless, I remain encouraged by the bi-partisan effort taking place to design and deliver a modern legislative building that will enhance Minnesota’s tradition of public participation in government.”
Let’s remember that then-Rep. Bakk ignored the Single-Subject Provision of Minnesota’s Constitution in 1997:
Recent laws struck down under this single subject provision include:
1) a prevailing wage provision authored by then Rep. Tom Bakk in the 1997 Omnibus Tax Bill (Associated Builders and Contractors v. Ventura; Minnesota Supreme Court, 2000
Thats’ why Sen. Bakk’s legal opinion isn’t trustworthy. Sen. Bakk wanted a new office building. That’s shameful. The DFL, under the ‘leadership’ of Gov. Dayton, Sen. Bakk and Speaker Thissen, have spent taxpayers’ money foolishly. The proposed Senate Office Building isn’t needed. It’s a luxury.
In Sen. Bakk’s words, he thinks the lawsuit is a waste of taxpayers’ money. I totally disagree. Letting politicians know that taxpayers are watching is worthwhile. Letting Democrat politicians know that they can’t do whatever it takes to pass their pet pork projects is worthwhile, too. Spending $90,000,000 on a building we don’t need is a waste of taxpayers’ money. Sen. Bakk knows that.
There’s another facet to this proposed project. Sen. Bakk didn’t have the votes to pass a big bonding bill. After counting the votes, he shifted the project into the Tax Bill. That’s proof that Sen. Bakk wouldn’t hesitate in using his entire bag of tricks to get his pet pork project passed.
Bonding bills aren’t like other bills because they require at least 81 votes in the House and at least 41 votes in the Senate. There’s no way Republicans would’ve supported the Senate Office Building project, which meant Sen. Bakk’s pet pork project would’ve gotten defeated.
That’s a defeat Sen. Bakk couldn’t tolerate because he needed to be winning in order to get as much of his agenda included in the final budget as possible. A stinging defeat for Sen. Bakk would’ve greatly diminished his political capital heading into budget negotiations against Speaker Thissen. That’s why he didn’t hesitate in ignoring the Constitution’s Single Subject Provision.
BTW, yes, Sen. Bakk saw budget negotiations as a fight between himself and Speaker Thissen. At best, they tolerate each other. At worst, they’re at each other’s throats. This isn’t speculation. Capitol insiders have known this for years.
Technorati: Tom Bakk, Paul Thissen, Mark Dayton, Bonding Bill, Pork, Senate Office Building, DFL, Jim Knoblach, Single Subject Law, Minnesota Constitution, Lawsuit, MNGOP
This op-ed calls out the DFL, starting with Gov. Dayton, Sen. Bakk and Speaker Thissen, for telling whoppers about repaying the school shift. Dan Fabian’s and Deb Kiel’s op-ed is a shot across Gov. Dayton’s bow:
So, when Gov. Mark Dayton and Democratic leaders recently declared their one-party control led to the state making good on $2.5 billion in delayed K-12 school payments, we stopped dead in our tracks, totally astonished.
Now, people who know us gather we are reasonable people. We don’t like to get into partisan politics, but in this instance, we felt the need to set the record straight to what we view as one of the more egregious examples of political misrepresentation.
Rep. Fabian and Rep. Kiel won’t say it this harshly but I will. Gov. Dayton, Sen. Bakk and Speaker Thissen lied through their teeth. (I first wrote about this in this post.) Here’s what the DFL press release admitted:
Governor Mark Dayton, Senate Majority Leader Tom Bakk, House Speaker Paul Thissen, Management and Budget Commissioner Jim Schowalter, and Education Commissioner Brenda Cassellius announced that Minnesota schools were repaid an additional $636 million at the end of the 2013 fiscal year.
The budget that was in place through the end of FY2013 was passed by the GOP legislature after a lengthy shutdown caused by Gov. Dayton. Credit for paying off $636,000,000 of the school shift rightly belongs to the GOP legislature, first because their budget created a healthy surplus and secondly, because the GOP legislature said no to the greedy fingers of the DFL’s special interests.
Here’s some verifiable facts for Gov. Dayton, Speaker Thissen and Sen. Bakk to digest:
From the previous Legislature, we inherited a $5 billion deficit, including a $2 billion school shift. A “shift” simply means that payments to K-12 schools are delayed to a later date in order to provide a one-time savings to the state without actually reducing education appropriations.
As we wrestled to balance a historic deficit and out-of-control spending, we and our legislative colleagues called for holding the line on taxes and controlling state spending; on the other hand, Dayton called for large tax increases to fix the deficit.
During compromise negotiations, Dayton was first to float the idea of delaying school payments to an even later date. Ultimately, as part of the 2011 budget agreement with the governor, the amount owed in deferred payments to schools grew to $2.7 billion.
In other words, the DFL had little, if anything, to do with accelerating the paying off of the school shift. Rep. Thissen didn’t vote for the budget Gov. Dayton grudgingly signed. Sen. Bakk didn’t vote for the budget that Gov. Dayton grudgingly signed, either.
It’s pretty pathetic to see 3 people attempting to take credit for something they shut down the government to prevent. That’s the sad truth of this episode. Here’s what the Democrats said about the GOP budget:
Hardworking Minnesotans responded well to the budget that didn’t tax them, and revenues coming in to the state were consistently higher than expected. Record numbers of businesses popped up, and the unemployment rate continued to drop.
In April 2012, Dayton vetoed the Legislature’s move to pay back more than $2 billion in delayed K-12 payments. With this veto, Dayton said, “This is what I think is right for Minnesota.”
Vetoing a bill that would’ve paid off the vast majority of the school shift, then taking credit for paying off the school shift with the money from a budget they didn’t want belongs in the theater of the absurd. It’s pathetically fitting that Democrats would take credit for something they didn’t want anything to do with.
By this point, the 2011 fiscally responsible budget had produced nearly $3.4 billion in cumulative budget surpluses. Of this, about $2.5 billion has been applied to the school shift, leaving only about $238 million from the 2010 DFL-led Legislature.
During the 2013 session, our DFL colleagues enacted a special provision that allowed them to use the remaining budget surplus of $636 million and put it toward the remaining school shift.
Now, Gov. Dayton and legislative leaders who decried the 2011 budget are taking credit for its benefits. We have to admit, it’s a shrewd move and politically savvy. But it’s not honest.
The words honesty and Democrats fit together as nicely as ‘government shutdown’ and ‘respectful of veterans’.
Gov. Dayton and the Democratic legislature fought against paying off the school shift. Democratic legislators voted in lockstep against the GOP to repay the shift. Gov. Dayton vetoed the bill that would’ve paid off $2,500,000,000 of the school shift. Those are verifiable, irrefutable facts.
Gov. Dayton and the Democratic legislature should be ashamed of lying this blatantly about who paid off the school shift.
UPDATE: Sen. Nienow just emailed me this clip from this September’s special session. In the video, Sen. Bakk admits that the school shift wasn’t in the DFL’s budget. Further, Sen. Bakk made clear that paying off the final $238,000,000 would rely on whether sufficient revenues came in. Finally, Sen. Bakk sounded anything but clear on whether there was enough money to repeal the DFL’s mistake taxes, aka the B2B sales taxes on farm equipment repairs, telecommunications purchases and the warehousing services sales tax.
Technorati: K-12 Education, School Shift, Mark Dayton, Paul Thissen, Tom Bakk, DFL, Dan Fabian, Deb Kiel, School Shift Repayment, Rainy Day Fund, MNGOP
The first thing I thought after reading this article was whether the media outlet just reprinted a DFL press release. Here’s the opening to the DFL-issued statement:
St. Paul, MN (NNCNOW.com) — Nearly $2.6 billion of the $2.8 billion borrowed from Minnesota schools has been repaid under the leadership of Governor Dayton and the DFL Legislature.
Governor Mark Dayton, Senate Majority Leader Tom Bakk, House Speaker Paul Thissen, Management and Budget Commissioner Jim Schowalter, and Education Commissioner Brenda Cassellius announced that Minnesota schools were repaid an additional $636 million at the end of the 2013 fiscal year.
Talk about chutzpah. That’s breathtakingly arrogant. First, the DFL’s all taxes budget didn’t go into effect until the start of the 2014 fiscal year. Further, the DFL legislature voted against the K-12 Education Omnibus bill. DFL senators didn’t vote for it. DFL representatives didn’t vote for it. Gov. Dayton signed it but only after he shut state government down for several weeks.
The GOP, thanks to the hard work of Pat Garofalo, Sondra Erickson and others, put together a fiscally responsible budget that produced a surplus. That surplus was used to refill Minnesota’s rainy day fund before being used to pay down the school shift.
Under the leadership of Governor Dayton and the DFL legislature, Minnesota has now repaid nearly $2.6 billion of the $2.8 billion that was previously borrowed from our schools.
“Last spring, the DFL legislature and I passed the first responsible state budget in more than a decade,” said Governor Dayton. “This additional repayment of the state’s debt to our schools marks another step toward a clean fiscal slate, from which we will build a better Minnesota.”
First, raising spending by $3,000,000,000, then recklessly increasing taxes and fees by $2,400,000,000 isn’t a responsible budget. Next, the money that repaid the school shift came from the budget that the GOP passed.
“Schools across Minnesota were put under enormous financial stress by the Republican school shift, and paying back every penny remains a priority in the Senate,” said Senator Bakk. “This repayment, along with the significant investments in education approved last session, further strengthens the state’s partnership with local school districts.”
The DFL legislature touts itself as ‘the Education Legislature’. It’s nothing of the sort. It’s the enemy of school reform. I wrote here about how the DFL gutted the education reforms that the GOP put into place. Here’s language from the GOP bill:
“The board must adopt rules requiring a person to pass a skills examination in reading, writing, and mathematics as a requirement for initial teacher licensure. Such rules must require colleges and universities offering a board-approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the skills examination, including those for whom English is a second language.”
Here’s language from the DFL bill that gutted the GOP’s accountability-oriented reform:
The board must adopt rules to approve teacher preparation programs. The board, upon the request of a postsecondary student preparing for teacher licensure or a licensed graduate of a teacher preparation program, shall assist in resolving a dispute between the person and a postsecondary institution providing a teacher preparation program when the dispute involves an institution’s recommendation for licensure affecting the person or the person’s credentials. At the board’s discretion, assistance may include the application of chapter 14.
The DFL bill doesnt’ require teachers to pass a test on their competency to teach a class. If the DFL wants to brag about gutting teacher accountability requirements, I won’t object.
A decade of cuts, shifts, and gimmicks caused Minnesota to lurch from one budget crisis to the next, limiting the state’s ability to fund education and job creation. This year, the Governor and DFL legislature put an end to roller-coaster deficits with a fair and balanced budget that put Minnesota on sound fiscal footing and delivered key investments in education.
Again, this isn’t an editorial. It’s an actual ‘news story’. At least, that’s what it purports to be. It’s more like a DFL press release.
I’ve been a fan of Kurt Daudt’s for awhile now but I’m especially proud to call myself an ally of his after watching this video:
Here’s part of what Rep. Daudt said that caught my attention:
REP. DAUDT: Even Gov. Dayton, when facing Minnesotans at public functions, reversed his support for some of these damaging tax increases. This special session was Gov. Dayton’s and Democrats’ opportunity to make good on their statements and ensure that their actions match their words. We’re all here and today, you had a chance to correct your mistakes. And Democrats, you have absolute and complete control of state government in Minnesota. You have no excuse to make Minnesota taxpayers wait even one more day. If Minnesota loses even one employer or one job because you failed and delayed in repealing your mistakes, it’s one too many. Minnesota companies and hard working families can’t afford to pay for your mistakes.
Rep. Daudt is totally consistent in criticizing the DFL. He’s consistently said that it’s Gov. Dayton’s and the DFL’s mistakes that are hurting Minnesota farmers and taxpayers. It’s only right that they take the blame for these counterproductive tax increases. After all, the DFL wrote the bills. Additionally, those tax increases passed without a single GOP vote in the House.
About a month ago, Gov. Dayton said that he’d changed his mind on the farm equipment repair sales tax while attending FarmFest. Days after pandering to farmers, the DFL broke Gov. Dayton’s promise.
Cargill has shifted part of its operations to Colorado. Red Wings Shoes is considering shifting its warehouse operations to Wisconsin. Other iconic Minnesota businesses are considering moving, too, as a direct result of the Democrats’ tax increases.
Friday night, I was stunned to hear Senate Majority Leader Tom Bakk hint that the DFL might not repeal these B2B sales tax increases. Sen. Bakk said that he doesn’t know how he’d come up with the $300,000,000 in lost revenue those repeals would represent.
While Democrats insist that they’ll repeal their mistake taxes, Sen. Bakk’s statements put their statements into question. It isn’t at all clear that the DFL will repeal these ill-advised tax increases.
Monday’s special session dealt with natural disaster relief. Unfortunately, the DFL was too stubborn to deal with their “man-caused disasters”, aka their ill-advised and counterproductive tax increases.
Minnesota’s version of the Keystone Cops, aka Gov. Dayton, Speaker Thissen and Senate Majority Leader Bakk, are poised to further screw up the upcoming unsession:
Democrats who control state government showed disagreements and problems communicating while discussing a special legislative session this week at the Minnesota State Fair and the state Capitol.
There was a sharp disagreement between Gov. Mark Dayton and Senate Majority Leader Tom Bakk during interviews minutes apart when they were asked about sending another $1 million to southwest Minnesota counties affected by an April ice storm. And Bakk had expected a joint House-Senate committee to draw up disaster-relief legislation, but the Wednesday night meeting of the group is the only one planned.
What a state emergency services official called straight-forward disaster aid is turning into a legislative struggle.
“There are a couple of challenges,” House Speaker Paul Thissen, DFL-Minneapolis, said about the Dayton wish to give $1 million Rock and Nobles counties for the April storm. One of those “challenges” is a dispute between Dayton and Bakk.
“I’m really pushing hard,” Dayton said of the added $1 million, adding later that he “insists” on the money. “I’m very persuasive.”
Dayton and the Democrats are screwing something up as simple as spending federal disaster relief money.
During the regular session, they fought amongst themselves on which taxes to increase. It wasn’t a debate of whether to raise taxes, which would’ve been a worthwhile debate. It was about which parts of the economy they wanted to hurt most.
This time, it’s about whether Gov. Dayton will get an addition $1,000,000 to spend. It isn’t needed. It isn’t a stretch to think that it’s going to a DFL political ally.
This isn’t just about Gov. Dayton’s foolishness, either:
Bakk also said he expected an informal legislative committee to write legislation to be considered during the Sept. 9 special disaster-relief session.
However, after the committee met Wednesday night, its chairmen said they had no plan to call another meeting. “The leadership will have to figure it out,” Bakk said, after being told no more meetings will be called.
Bakk and Thissen tasked this committee with writing the legislation. They couldn’t even finish that. Now they’ll have to craft that legislation when this session starts. That needlessly lengthens the special session.
The DFL’s incompetence is stunning. They aren’t getting disaster relief money to the victims without fighting over spending additional money. They couldn’t finish their regular work without tensions, animosity and additional drama. Even then, they couldn’t get their job done without hurting high tech companies (telecommunications tax), farmers (farm equipment repair sales tax), convenience stores (cigarette tax) and iconic Minnesota businesses (warehouse services tax).
Iconic companies are thinking about moving major parts of their operations to other states. That list includes Red Wing Shoes, Polaris and DigiKey. Another iconic Minnesota company, Cargill, already shipped part of their operation to Colorado.
Gov. Dayton and this DFL legislature have done a terrible job. They’ve hurt businesses. They had a difficulty getting their basic functions done on time. Now, they’re having difficulty getting disaster relief to storm victims.
Technorati: Federal Disaster Relief, Special Session, Mark Dayton, Tom Bakk, Paul Thissen, Telecommunications Sales Tax, Farm Equipment Repair Sales Tax, Warehouse Tax, DFL, Red Wing Shoes, Polaris, Cargill, DigiKey
During the Political Analysis segment of At Issue With Tom Hauser, former DFL State Senator Don Betzold admitted that some tax hikes were put into the bill late in the session that Gov. Dayton didn’t know were in the bill he signed. He then talked about how hectic the last weekend of the session is.
What he didn’t admit is that past end-of-session weekends have involved a governor of one party and the legislature of the other party. That wasn’t the case this time. The DFL owned it all from opening gavel to closing bell.
Not only that but the DFL leadership announced that they’d reached a Tax Bill agreement a week before end of session:
Thissen, Gov. Mark Dayton and Senate Majority Leader Tom Bakk of Cook said they agreed on spending targets and will give conference committees a few other guidelines, such as:
- The sales tax would not rise on consumer goods, including clothing, but businesses could pay sales tax on goods sold to other businesses.
- taxes would go up on people in the top 2 percent of Minnesota earners, couples with $250,000 or more taxable income.
- An income tax surcharge would be added for Minnesota’s richest of the rich, with proceeds going to help repay money the state has borrowed from school districts.
- Cigarette taxes would rise.
- Some business tax breaks would disappear.
- All-day kindergarten would be funded.
- The state would spend $400 million in property tax relief, such as by increasing aid sent to local governments.
In short, Gov. Dayton, Speaker Thissen and Senate Majority Leader Bakk knew that the warehouse tax, the telcommunications tax and the farm equipment tax would be in the final tax bill because that’s what they negotiated.
The DFL owns the tax hikes because they passed them without GOP support. The DFL owns them because they were their idea. The DFL owns them because their leadership in St. Paul negotiated them into the final Tax Bill.
This wasn’t a high speed train crash. It was a slow-motion train wreck. Businesses lobbied against these taxes. The DFL ignored their lobbying efforts and passed them anyway. Eventually, they realized they’d made a political mistake. (I’m not certain they understand they made a policy mistake.)
Later, Gov. Dayton promised f.armers at FarmFest that he’d repeal the farm equipment repair sales tax during the special session. In the end, he broke that promise, too.
Technorati: Tax Increases, Broken Promises, Budget Negotiations, Deadlines, Tom Bakk, Paul Thissen, Mark Dayton, DFL, Farm Equipment Repair Sales Tax, Warehouse Tax, Telecommunications Sales Tax, Farmers, Small Businesses
Rep. Sarah Anderson issued this statement about the DFL’s tax increases:
As a kid, you dreaded hearing the phrase, “other figures sold separately,” at the end of a toy commercial. It meant you weren’t really getting what you were seeing on the TV. That’s kind of how I feel about the upcoming special session in September.
Shortly after session ended in May, I heard some Democrats say they wanted to repeal the business to business taxes included in the final tax bill. However, when the opportunity to stop the bleeding from this tax came upon us with the proposed special session, we only got the “other figures sold separately” line. This refusal to correct a “bad tax policy” means Minnesota will lose businesses and the jobs these businesses provide along with consumers being forced to pay more for products.
The B2B tax on storage and warehouse services alone could cost our state over 7,000 jobs. Four states who tried the warehouse tax repealed it within six months. One state repealed it in two days.
Today, we heard from former Democrat Speaker Margaret Kelliher asking the Legislature to repeal the telecommunication tax. It is estimated this tax will cost our state 3,300 jobs. I agree with the former Speaker that we need to take action now and repeal all of the business to business taxes. See her comments here: http://kstp.com/article/stories/S3134462.shtml?cat=89
It’s not just jobs we stand to lose; every Minnesota family will pay more for groceries, medicine, personal care products, and much more. The Department of Revenue study notes that families will pay more when new business tax increases are passed on to consumers. In fact, this same study shows that the people who earn the least amount of money will pay the most for the $2.4 billion in tax and fee increases passed by the Democrat-controlled Legislature and Governor’s office.
Though the Democrat leaders announced today that they won’t fix this problem in the September special session, my Republican colleagues and I will continue to encourage them to correct this huge mistake. We cannot afford to lose any more jobs and we should not force higher prices on already struggling families.
The DFL imposed huge new tax increases this session, including a telecommunications equipment sales tax, a farm equipment repair sales tax, the warehouse sales tax and a gigantic cigarette tax increase.
I wrote here about Speaker Kelliher’s call for repealing the telecommunications equipment sales tax. I wrote here about Gov. Dayton, Speaker Thissen and Sen. Bakk breaking their promise to farmers. I wrote here about how the cigarette tax is hurting convenience stores, especially in the Moorhead area. This morning, Rep. Mary Franson confirms the damage being done to convenience stores in this tweet:
met with a wholesaler in my district this week. C-stores along border struggling.
Gov. Dayton and the DFL have made overtures towards green energy companies in an attempt to lure them here from other states. Unfortunately, they’re punishing companies already operating in Minnesota. Playing favorites with the economy is what helped drive the US economy into the Great Stagnation. Apparently, Gov. Dayton and the DFL didn’t learn. Apparently, they think that they can follow the same pattern and get better results. That’s either foolishness or arrogance. Either way, it’s counterproductive, which is what Gov. Dayton’s and this DFL legislature’s reputation should be.
Technorati: Sarah Anderson, Special Session, Tax Increase Repeal, Mary Franson, MNGOP, Telecommunications Sales Tax, Warehouse Tax, Farm Equipment Repair Sales Tax, Cigarette Tax, Tax Increases, Broken Promises, Farmers, Convenience Stores, Mark Dayton, Paul Thissen, Tom Bakk, DFL