Archive for the ‘Taxes’ Category
This weekend, I wrote that I was skeptical of reports that a special session would be called this August. After reading Don Davis’ article, I’m hoping that a special session only happens if Republicans stand steadfast against SWLRT.
In the article, Sen. Bakk thinks that, with regards to SWLRT, “there appear to be some alternatives available.” Here’s hoping that Speaker Daudt shoots that down immediately and harshly. Anything that gets SWLRT built is unacceptable. Any Bakk-favored alternative should be shown the door in as hostile a manner as possible.
LRT projects are a disaster. If communities want to build them, let them build them with their tax revenues. Then let them subsidize their operations with their property taxes or their sales taxes. Talk that the business community wants them isn’t justification for building SWLRT. If businesses think LRT is so fantastic, let them pay for building them.
The dirty little secret is that LRT isn’t worthwhile except if taxpayers build it and subsidize its operations. Even then, these projects benefit the few while hurting others. Ask the displaced businesses in St. Paul if they’re fans of LRT. Hint: when asking that question, wear a bullet-proof vest.
There is some good news in the negotiations:
Dayton said he is more optimistic than ever that there will be a special session. “Where there is a will, there is a way.” The governor said he gave up all spending he earlier wanted to come up in a special session other than work needed on sex offender facilities and at the state hospital in St. Peter.
That’s the benefit of steadfastly saying no to unreasonable spending demands. Give Speaker Daudt and Sen. Hann and their caucuses credit for that. It wouldn’t have been possible if members of their caucus had left their reservation.
That’s why Speaker Daudt needs to return to that position and why Sen. Hann needs to be given the title of majority leader. Conservatives would applaud them shutting down Gov. Dayton’s reckless spending demands. Minnesota’s economy would improve by not having the legislature and the governor pile tons of new regulation on small businesses, too.
According to this article, Sen. Bakk, Speaker Daudt and Gov. Dayton are close to an agreement on a special session. I question the accuracy of that statement.
The article opens by saying “A special Minnesota legislative session to approve tax cuts, transportation projects and public works construction could happen in a month, but the governor and key legislators are not quite ready to promise that.” Notice the hint that all is not well? Saying that “the governor and key legislators are not quite ready to promise that” set off red flags with me. Several paragraphs later, my suspicions were vindicated.
The vindication came when the article said a “major unresolved issue continues to be whether to approve a light rail line from downtown Minneapolis to the southwestern suburbs.” That’s indisputable. That’s the line Republicans shouldn’t cross under any circumstances. It’s the Minnesota equivalent to the infamous Bridge to Nowhere.
Speaker Daudt needs to realize that he’s sitting in the power position. I’m betting that DFL candidates aren’t popular because Gov. Dayton vetoed a major tax cut bill. Bakk and Dayton aren’t striking a more conciliatory tone because they’re altruistic. They’re striking a more conciliatory tone because they aren’t getting the response they’d hoped for.
Speaker Daudt, Sen. Hann and all Republicans should stand steadfast against the SWLRT project. If metro DFL legislators object, fine. Republicans don’t need to flip urban seats to flip the Senate. They need to flip seats in rural Minnesota. That’s where the tax cut bill is popular. If DFL candidates and incumbents want to defend Gov. Dayton’s veto of the Tax Bill, Republicans should rejoice that the DFL is giving them that gift.
Further, I’d encourage Republican House and Senate candidates to highlight the fact that the DFL put broadband and SWLRT at the top of their priority list and that Republicans put gutting taxes on farmers, the middle class, the military and small businesses at the top of their priority list.
Let’s fight that fight on our side of the battlefield. Let’s see if the DFL is capable of fighting that fight. I’m betting they’ll lose that fight by a significant margin.
Technorati: Mark Dayton, Tom Bakk, SWLRT, Pocket Veto, Broadband, Kurt Daudt, Farmers, Military Veterans, Middle Class Tax Cuts, Small Businesses, College Students, Student Loan Debt, College Tuition, Republicans, Election 2016
Ron Kresha represents Little Falls in the House of Representatives. Rep. Kresha is the incumbent running for re-election in District 9B. (The main cities in Rep. Kresha’s district are Little Falls, Long Prairie and Pierz.) It’s safe to say that HD-9B is a district with tons of farmers. Though the district has changed since I last visited the area, I’m still able to identify most of the cities and towns in the District.
Now that I’ve laid out the history of the district, let’s dive into the editorial Rep. Kresha’s opponent wrote. Rep. Kresha’s opponent made a point of saying “I will listen to farmers. I will stand up for our farmers, and I will fight for our farmers because I know that without them, our communities would not survive. As state representative, I will make sure our farmers are not forgotten in St. Paul. That is why I am running as the Democratic-Farmer-Labor candidate. I want to shed light on the struggles our farmers deal with and thank them for their hard work.”
Of course, Rep. Kresha’s opponent had to throw in the cheap shot of saying “My opponent in Minnesota House 9B has done very little to preserve farms and to make certain farmers are treated like the first-class citizens they are.”
With all due respect, the DFL hasn’t done much to help farmers. The DFL opposes building pipelines that would free up rail space so farmers could get their crops to market faster. In fact, the DFL is ruled by environmental activists who love regulating farms to death. Metro Democrats tried and succeeded in killing a major proposed farming operation in western Minnesota through the use of the now-defunct Citizens Advisory Board. The DFL killed this proposed farming operation so Republicans killed the advisory board because “the Citizens Board had stopped projects that had gotten their MPCA permits.”
Does anyone seriously think Rep. Thissen will let Rep. Kresha’s opponent fight for farmers? There’s a better chance that the king’s horses and king’s men will put Humpty Dumpty back together again than there is of Rep. Thissen will let any pro-farmer legislation get a committee hearing. If you’re living in rural Minnesota, voting for the DFL is a wasted voted.
After reading this LTE, I’m left wondering whether everyone in the DFL is utterly gullible or if it’s just a majority of them that are gullible.
I started questioning the premise when I read “Even though I haven’t been politically involved, I have done a fair amount of reading. The Minnesota Republican Party seems to be stuck in the thinking that what we need is more tax cuts for the wealthiest Americans.” How can you do “a fair amount of reading” and still think that the Republican Party of Minnesota thinks “that what we need is more tax cuts for the wealthiest Americans”?
Anyone with a reading comprehension level above eighth grade knows that the GOP passed a tax bill that would’ve benefitted veterans, students with student loan debt, farmers, small businesses and parents trying to save for their children’s college education. What part of that sounds like Republicans think “tax cuts for the wealthiest Americans” is the path to prosperity?
Either the man who wrote this LTE is illiterate or he’s exceptionally dishonest. It’s possible he’s both.
When this year’s legislative session ended, the CW was that the DFL held the upper hand in the PR/campaign fight. Whether that was true or not at the time isn’t relevant anymore. What’s relevant is who’s fought the smartest fight to this point. This statement hammers home some important points.
In total, it says “House Republicans did their job this year, negotiated in good faith and passed bipartisan bills on the priorities most important to Minnesotans. Unfortunately, Senate Democrats and Gov. Dayton deliberately obstructed progress. First, Senate Democrats blocked funding for transportation and infrastructure, then Governor Dayton vetoed tax relief for working families, college students, parents, farmers, and veterans. If Gov. Dayton knew he was going to veto the tax bill, he should have done it a long time ago and called a special session right away. Now the election is ramping up and the political environment will get in the way of honest compromises. We are willing to hold a special session. We agree with Gov. Dayton’s requests in the tax relief bill, and we should pass the bipartisan compromise transportation and infrastructure bill that was agreed to on the last day of session. We are not going to rehash the whole session by repeating negotiations on half a billion dollars of new spending demands.”
The DFL has talked solely about process, talking about the end of session. Republicans have talked about Gov. Dayton vetoing the Tax Bill, then questioning why Gov. Dayton decided to hurt veterans, farmers, college students, parents saving for their kids’ college education and small businesses.
I won’t say that people don’t care about process. If I were a betting man, though, I’d bet that people care more about getting tax relief. If the DFL thinks that they’re winning that fight, I hope they keep thinking that.
The DFL is also highlighting the line ‘If the Twin Cities wants to raise the money to build SWLRT, they should be able to.’ I’d agree to that statement only if the DFL agreed that the metro also paid for the annual operating deficits, too.
The DFL needs to pick up seats in exurban and rural Minnesota. Arguing that tax relief for farmers, veterans and small businesses hinges on a metro project is exceptional stupid politics on the DFL’s part.
Technorati: Mark Dayton, Southwest Light Rail Transit, Pocket Veto, Special Session, DFL, David Hann, Tax Bill, Small Business, Property Tax Relief, Farmers, Veterans, Income Tax, MNGOP, Election 2016
Saying that this editorial doesn’t have a pro-DFL tone to it is understatement. Let’s start with where the editorialist says “when Gov. Mark Dayton pocket vetoed HF 848 which would’ve provided significant tax relief to the citizens of Minnesota, it sort of felt like something major was lost.”
I don’t think Gov. Dayton realizes that his veto of the Tax Bill is killing the DFL. When the editorialist writes “Gone was tax relief for veterans, gone was tax relief for small business owners, gone was a tax break for farmers, gone was a tax break for the residents of Houston County who live in Minnesota but work in Wisconsin, gone was the forgiveness of interest paid on debt on the new school building.” he listed all of the groups of people who were hurt by Gov. Dayton’s veto. That’s a devastating paragraph.
It’s even more damaging to the DFL when the editorialist adds “All because the governor wanted additional monies for a light rail line in Minneapolis. Two years of hard, hard work by Rep. Greg Davids (Rep. Preston) on the bill dissolved by the governor not signing the measure into law.” This places the blame for Minnesotans not getting tax relief squarely on Gov. Dayton’s shoulders. People won’t care about the drafting error. Their response is likely to be ‘Call a special session and fix it then.’
Contrary to popular opinion, Republicans aren’t the ones at risk. The DFL is. While Gov. Dayton and the DFL whines about the end-of-session process, Republicans talk about the tax cuts that Gov. Dayton vetoed. In a messaging fight of end-of-session process vs. DFL vetoed tax relief, tax relief wins by a wide margin. If the DFL thinks that’s a fair fight, I’ll agree. It’s as fair a fight as I’d like.
Davids, when receiving the phone call from the governor of his plan to veto it, worked to appeal to their friendship. The governor chose politics.
That’s as surprising as finding out that the sun rises in the east. There’s more:
The Republicans came up from $600 million to $950 million in the bonding bill that would’ve addressed transportation needs in the state. Davids said anything over $1 billion jeopardizes the state’s bond rating. The governor wants $1.5 billion with about $600 million going towards a new light rail line in the metro.
Gov. Dayton is foolish if he thinks Republicans will cave on SWLRT funding. Like I said earlier, Republicans are in the stronger position. The DFL is sitting in a position of weakness, especially in outstate Minnesota.
People living in outstate Minnesota won’t care if SWLRT is funded. They’ll care that Gov. Dayton vetoed their tax relief. The longer this drags out, the better it is for Republicans. That’s because they’re fighting for fixing roads and bridges and significant tax relief.
That’s a winner for the GOP and then some.
Technorati: Mark Dayton, Pocket Veto, Bonding Bill, Tax Bill, SWLRT, Special Session, DFL, Greg Davids, Farmers, Veterans, Small Businesses, Property Tax Relief, Student Loan Debt, MNGOP, Election 2016
The special session that everyone wants to have hinges on 2 things: Gov. Dayton’s insistence on more spending in the general budget and funding of the SWLRT. Of the two, it’s thought that funding SWLRT is the higher priority for Gov. Dayton and the DFL.
That makes sense since they’re the metro party. They aren’t the party that puts a high priority on roads and bridges. They’re the party that sees transportation through the lens of using transportation as a tool for social engineering.
If there is a special session, there’s no doubt that the Tax Bill will be fixed, passed and signed. If Gov. Dayton vetoes it again, that veto will be put up for an override vote, which would pass overwhelmingly. The DFL doesn’t dare sustain Gov. Dayton’s veto this close to the election. That would be political suicide.
But I digress. Back to the transportation section of the bonding bill. Republicans should be the ‘party of no’ on SWLRT funding. In return, they could throw in a few more dollars for traditional transit. They should, however, be steadfast in their opposition to funding SWLRT.
If Gov. Dayton and the DFL pick SWLRT as their hill to fight and die on, then Republicans should take them up on that offer. That fight would strengthen every exurban and rural GOP incumbent and challenger immensely. It would simultaneously weaken every DFL legislator and challenger, too. This is one of the few times when politics is a zero-sum proposition.
Beyond the special session, though, Republicans should make a concerted effort to explain why the gas tax is obsolete as a funding method for fixing Minnesota’s roads and bridges. Though this op-ed talks about Wisconsin’s transportation situation, the same principles apply:
Wisconsinites are going farther on the same gallon of gas than they were even 10 years ago. This trend will not be reversing. The number of vehicles on the road has been stable since the beginning of the decade. The state cannot count on more vehicles on the road to make up for fewer gallons needed per vehicle. Furthermore, add in new vehicles that do not use gas or use very little like hybrids, fuel cells, and all electric, the future of gas tax revenue becomes clear to anyone with a basic understanding of mathematics.
The gas tax has reached the point of diminishing return. Increases in the gas tax will not provide the all the desired additional revenues the legislators, transportation bureaucrats, and road builders hope for. When you raise the price of something, you get less of it. When gasoline was $4.00 per gallon, people drove less than they do now at $2.50. Drivers also gravitated to more fuel efficient options or options that do not use gasoline at all. These options will only get more abundant as the technology improves.
In 2008, the DFL promised that raising the gas tax would provide the funds to fix Minnesota’s roads and bridges. It’s failed miserably. I predicted at the time it would fail. I wasn’t alone.
It’s time to start pushing the issue of finding different ways to fund road and bridge repair. If the GOP wants to provide a contrast to the DFL on transportation, which it should, this is the approach to take.
Yesterday, negotiators from the Minnesota House and Senate theoretically met in the hopes of hammering out a bonding bill agreement. That wasn’t the DFL’s goal. DFL senators, led by Jeff Hayden, blamed Republicans for not getting the bonding bill passed.
The DFL used the same misleading arguments they’ve been using since the DFL Senate sabotaged a bill that had broad bipartisan support. Here’s what’s important to know. The House passed a $1,000,000,000 bonding bill without funding for SWLRT. SWLRT funding wasn’t part of the agreement reached by Speaker Daudt and Sen. Bakk. Simply put, it didn’t have the votes to pass in the House.
Key questions: Why does the DFL insist on pushing a controversial project that didn’t have the votes to pass? Isn’t that a definition of insanity? Isn’t that what you’d do if you wanted to prevent a bill from passing while blaming the other side for your obstruction?
Another tactic that the FL is using to deflect criticism from Gov. Dayton’s veto of the tax bill is talk about the $100,000,000 drafting error. The minute Gov. Dayton brought it up, Speaker Daudt agreed to fix it the minute a special session was called. Problem solved, right? In Sanityville, yes. In Dayton-DFLville, that molehill turned into a mountain. At least, that’s how some of Twin Cities media are playing it.
Simply put, Gov. Dayton vetoed a tax bill that a) provided tax relief to farmers, small businesses, students will college loan debt, veterans and parents saving for their kids’ college education and b) passed 178-22 in the House and Senate.
Key question: Doesn’t real leadership accept yes for an answer and move onto bonding bill negotiations?
Gov. Dayton and the DFL aren’t about fixing things, though. Their word salad automatically talks about ‘bringing people together’ and ‘making progress’. The DFL never talks about fixing problems. The DFL doesn’t talk about doing the right thing.
There’s a reason for that. The DFL doesn’t want to get to a point where things are running smoothly. The DFL doesn’t want to fix things. If that happened, people might expect that. If that happened, people might notice that they prefer limited government that gets the important things right all the time and worries about peripheral things once they’ve gotten the important things right. The day that that happens is the day that progressives are out of a job.
The DFL’s whining is aimed at one thing: regaining control of the House so they control state government again. Thoughtful people should reject that possibility ASAP. The last time the DFL ran St. Paul, taxes got raised, including property taxes, spending went through the roof and they checked off tons of things from their special interest allies’ wish lists.
As a result, capitol flight accelerated and young, productive, people left the state at a greater rate. If losing the border battle brain drain sounds appealing, vote DFL. If you want statewide prosperity, vote GOP. It’s that simple.
Now that we’re in the 6th painful year of Gov. Dayton’s administration, we have a historical record to judge his administration on. It isn’t a history of successful negotiating. In 2011, Gov. Dayton attempted to push the GOP legislature into accepting his tax increase proposal when Gov. Dayton shut down the government. Let there be no doubt about this. Gov. Dayton planned the government shutdown. Insiders at HHS saw a memo that outlined the strategy a week after the end of the regular session and a month before the official shutdown. The memo explained how Gov. Dayton and the DFL would exploit the media in their attempt to vilify the GOP.
After that fizzled, Gov. Dayton announced that he was going to tour the state to raise support for his budget. Originally, it was planned to hit Rochester, then St. Cloud, Moorhead, Duluth, Brainerd and Bemidji. The Rochester stop fizzled even though they planned on heavy union participation in Rochester.
That afternoon, St. Cloud got word that Rochester had fizzled. When Gov. Dayton appeared at Apollo High School, Steve Gottwalt stole the show, telling Gov. Dayton that they could resolve the budget impasse by getting Dayton’s administration out of St. Paul and bringing Gov. Dayton’s number crunchers to St. Cloud. After the Apollo meeting, it was announced that the rest of Gov. Dayton’s trips were canceled. A week later, the special session was held. The shutdown ended.
Last year, Gov. Dayton tried the same gambit. He did his utmost to portray Republicans as heartless politicians who don’t care about people. Gov. Dayton insisted on funding Universal Pre-K. Rather than caving, Speaker Daudt met with Dr. Art Rolnick. During the regular session, Dr. Rolnick said that universal Pre-K wasn’t the way to go:
Also, interestingly enough, early education advocates throughout the state, including myself, a person like Art Rolnick, a person who has pushed early childhood learning to the head of our state, is saying that the Governor’s plan to implement is wrong. We should be targeting resources to those kids most in need.
It wasn’t until a month later that Gov. Dayton caved on universal Pre-K. Again, Gov. Dayton’s top priority, the thing he wanted most of all, he didn’t get it. Speaker Daudt made a fantastic policy statement, bringing in Dr. Rolnick and making the case against universal Pre-K.
This year, Gov. Dayton wants funding for SWLRT and a ton of additional spending. Gov. Dayton is again touring the state. Friday, he’ll be at SCSU. I’ll be there to cover the event. Thus far, the DFL playbook has been pretty much what it’s always been, that Republicans don’t care about the little guy, that they only look out for millionaires and billionaires and multi-national corporations. This week, the GOP turned the tables on Gov. Dayton. They had Ryan Visher, a store owner from Madelia, MN, explain how Gov. Dayton’s veto of the Tax Bill will hurt him.
Predictably, the things that Gov. Dayton is pushing for aren’t popular outside of the DFL. It’s just a matter of time before everyone realizes that. Predictably, it’ll take a little time before DFL legislators will tell him that his pressure ploy isn’t working. Shortly after that, we’ll get a special session largely on Speaker Daudt’s terms.
Technorati: Mark Dayton, Government Shutdown, Special Sessions, Universal Pre-K, Southwest Light Rail, Pocket Veto, Tax Bill, DFL, Kurt Daudt, Ryan Visher, Property Tax Relief, Art Rolnick, MNGOP, Election 2016
Wednesday afternoon, I got into a discussion on Twitter with Rep. Kim Norton. Rep. Norton brought up the fact that there’s a language error in the tax bill that needs to be corrected. The bill’s language will cause a $100,000,000 in revenues. That point isn’t in dispute. In fact, Speaker Daudt has said that fixing the drafting mistake will be the first order of business the minute a special session is called.
What’s interesting is that William Morris’ article highlights how DFL legislators aren’t on board with Gov. Dayton’s agenda. Sen. Vicki Jensen said “It’s very unreasonable, that whole list of demands he has. I’m hoping they don’t add a bunch in, and we don’t have to have a huge conversation.”
It’s time to fix the tax bill so that people like Ryan Visher can get the property tax relief he needs to get his business back up and running. The only thing standing in the way of a short special session is Gov. Dayton’s insistence on funding for the SWLRT and his insistence on $423,000,000 of additional new spending.
Last year, Gov. Dayton torpedoed the bipartisan budget agreement. Last year, he insisted on funding universal pre-K. After a long standoff, Gov. Dayton caved and called a special session. It took a full day but business got done.
It’s important to remember that Gov. Dayton shut down the government in 2011 and tried shutting it down in 2015. Now, Gov. Dayton is standing in the way of property tax relief for small businesses and farmers. He’s standing in the way of fixing dangerous roads like Highway 12, the deadliest stretch of highway in Minnesota.
It’s time for Minnesotans to write or call Gov. Dayton and tell him to stop acting like a little child throwing a temper tantrum and put Minnesotans like Ryan Visher first for a change.