Archive for the ‘Taxes’ Category
This ad, paid for by the House DFL Caucus, says that Zach Dorholt is “delivering for St. Cloud and the middle class”:
Like I said in this post, the DFL dances to the tune that Education Minnesota tells them to dance to. Zach Dorholt is no different. Like the rest of his DFL colleagues in the House of Representatives, Zach voted against teacher accountability because that’s what Education Minnesota told them to do. Rather than doing what’s right for Minnesota’s students and parents, Zach Dorholt and the DFL decided they couldn’t risk Education Minnesota pulling their campaign contributions or their Get Out The Vote (GOTV) operations.
When it’s a fight between doing what’s right for parents and students or doing what’s right for Education Minnesota, Zach Dorholt and the DFL will always fight for Education Minnesota.
The best way I can illustrate who the DFL fights for is to ask everyone when the last time was that the DFL picked the people instead of picking one of their special interest allies. Take your time. Do your research. Go through all of the DFL’s votes. That includes Zach Dorholt’s votes. Check out their votes in committee. Check out their votes on the GOP’s amendments to bills.
I’d bet that the DFL sided with the people less than 5% of the time when it was a fight between the people and one of the DFL’s special interest allies.
Let’s take this from the theoretical to the concrete. At their State Convention, did the DFL side with the blue collar workers of the Iron Range or the Twin Cities plutocrats and trust fund babies on mining? Did Dorholt and the DFL side with the women who ran in-home child care businesses or did they side with their friends in the SEIU and AFSCME instead?
The simple answer is that the DFL didn’t side with blue collar miners or the women who run in-home child care businesses. The DFL took the side of their special interest allies. Not once but twice. Unfortunately, those weren’t the only times that Zach Dorholt and the DFL didn’t take the people’s side.
In the spring of 2013, convenience stores lobbied the DFL legislature not to raise the cigarette tax, saying that raising the cigarette tax would hurt convenience stores on the Minnesota borders with North Dakota or Wisconsin. Zach Dorholt and the DFL couldn’t resist the ideological pull. They raised the cigarette tax, which led to Minnesotans driving to North Dakota or Wisconsin to buy their cigarettes.
Thanks to Zach Dorholt’s and the DFL’s decisions, middle class Minnesotans are getting squeezed. Despite significant increases in LGA and school funding, people’s property tax bills are going up. The jobs created during the time when the DFL controlled the entire state government are mostly part-time jobs or they’re low-paying jobs.
The unemployment rate on the Iron Range is 64.3% higher than the statewide average, thanks mostly to policies advocated for by environmental activists.
Zach Dorholt and the DFL are delivering. Unfortunately, they’re delivering for Education Minnesota and their other special interest allies, not for the middle class.
Friday, the Minnesota Chamber of Commerce endorsed Jeff Johnson in the Minnesota governor’s race:
In announcing the endorsement, the chamber’s interim president Bill Blazar said Johnson best represents the chamber’s “pro-business, pro-jobs agenda.” He said Dayton has enacted some of the highest tax rates in the country and increased labor regulations on employers that “seriously inhibits their ability to succeed and compete regionally and globally.”
Naturally, the Dayton campaign issued a statement on the Chamber’s endorsement:
Dayton campaign manager Katharine Tinucci said the governor wasn’t counting on the chamber’s backing despite participating in the screening.
“We’re going to continue to make the case that the progress that we’ve made the past four years has been good for workers, for working people, for families and for businesses,” she said.
TRANSLATION: We didn’t expect to get this endorsement because Gov. Dayton has waged a nonstop war against Minnesota’s small businesses:
After Teresa Bohnen pointed out concern by the business community on the impact of Governor Dayton’s 4th tier income tax on S-Corps I felt his response was disrespectful. He implied that businesses are “OK” with disparities in tax rates of businesses compared to middle income earners. He called the Minnesota Chamber destructive. Then he implied that Teresa and other businesses were unrealistic about the facts.
The fact that Gov. Dayton attempted to get the Chamber’s endorsement indicates he’s either delusional or desperate. When a former member of the Minnesota Chamber of Commerce board of directors says that Gov. Dayton called the Minnesota Chamber “destructive”, that’s a pretty good sign that he doesn’t stand a chance of getting the Chamber’s endorsement.
As for Ms. Tinucci’s statement that they’ve made progress the last 4 years that’ve “been good for workers, for working people, for families and for businesses,” she must be either a topnotch spinmeister or she’s using some expensive drugs. Gov. Dayton has fought the Chamber every step of the way. He’s raised taxes on the vast majority of the Chamber’s members. He signed, then repealed, some business-to-business sales taxes that would’ve caused iconic Minnesota companies like Red Wing Shoes, Polaris and DigiKey to move out of Minnesota.
That Gov. Dayton and his apologists in the DFL punditry have the audacity to say that they’ve passed bills that’ve made Minnesota’s economy better says that they’re willing to lie if that’s what’s needed to win this election.
Rural Minnesota’s economy isn’t great. It’s far from it. It’s worth noting that when the DFL insists that Minnesota’s economy is doing well, what they really mean is that the Twin Cities is doing ok. The dominant wing of the DFL is the Twin Cities Metrocrat. If they’re doing well, everything’s fantastic because, in their eyes, the Twin Cities, St. Cloud and Rochester are the only cities that matter.
There’s no doubt that the DFL/ABM/Team Dayton axis of spin will attack the Chamber’s endorsement of Jeff Johnson. ABM will undoubtedly characterize the Chamber as a bunch of rich, out-of-touch, white guys. While that’s likely to be their mantra, that isn’t reality.
The Chamber represents small businesses and entrepreneurs. What’s good for big corporations is entirely different than what’s good for small businesses. While both are established to make profits, that’s pretty much where the similarity ends.
Charlie Weaver’s Minnesota Business Partnership represents big corporations. Weaver’s sold out for his thirty pieces of silver. The Chamber, though, has sided with Jeff Johnson because he’d best represent the small businesses that drive all successful economies.
It’d be nice to have a governor who actually thought our economy extends beyond the Twin Cities. Gov. Dayton has shown he won’t pay attention to the economy outside the Metro.
The highlight of Bill Hanna’s article about his interview with DFL Party Chairman Ken Martin is this quote:
“I think we’re in a good position to close out the election. But we can’t be too cocky. That’s how we lose.”
Here’s a hint for Martin. The DFL doesn’t lose when it’s too cocky. It’s always too cocky. The DFL loses when it pays too much attention to its special interest allies and ignores the people. It loses when it goes hard ideological. That’s what happened in 2009-2010. That’s when the DFL legislature insisted on passing a budget filled with tax increases that paid for its payoffs to its special interests.
Tom Bakk, the Senate Majority Leader, has said that Minnesotans “don’t mind paying a little more in taxes” because they get their money’s worth from those taxes. That’s the DFL’s Achille’s Heal this year.
- Minnesotans aren’t getting their money’s worth from those increased taxes when DFL plutocrats take $90,000,000 to pay for an office building for part-time politicians instead of paying to fix Minnesota’s pothole-riddled streets.
- Minnesotans definitely aren’t getting their money’s worth from those increased taxes to pay for the utter incompetence at MNsure.
- The DFL can’t claim that Minnesota’s entrepreneurs were helped by raising their taxes. Job creation has virtually stopped since the Dayton-DFL tax increases hit these small businesses.
The only thing that’s helping the DFL right now is that the Twin Cities media’s coverage has changed since early summer. Back then, they actually talked about the negative effects the DFL’s policies were having, especially on the Iron Range. Now they’ve returned to talking only about the race to the finish.
DFL pundits, from Larry Jacobs to Ember Reichgott-Junge to Mindy Greiling, praise the strength of the Dayton-DFL economy because Minnesota’s unemployment rate is artificially low. They don’t talk about things like how many people have quit looking for work or how many “Starbucks MBAs” are employed in jobs that they’re vastly overqualified for.
The DFL promised jobs during their campaigns. They didn’t promise careers, with the exception of a career as a government bureaucrat. During the past 12 months, the Dayton-DFL economy has created 21,523 public sector jobs. That’s compared with the Dayton-DFL economy creating 2,900 total jobs in the last 7 months.
Chairman Martin’s job is to elect as many Democrats as possible, regardless of how much that’d hurt Minnesota. With outstate Minnesota’s unemployment rate high, it’s safe to say that the Dayton-DFL economic policies are hurting Minnesotans.
That’s especially true for the Range, where the region-wide unemployment rate is 8.02% compared with a statewide unemployment rate of 4.88%. Doing nothing while a major region of the state stagnates isn’t doing what’s best for the state. That’s the result of the DFL telling the Range that they’ll pay attention to the environmental activist-elitist wing of the DFL while ignoring the blue collar wing of the DFL represented by the Range.
It’s time for the Range to wake up and realize that the DFL is playing them for fools. It’s time they realized that Ken Martin’s DFL isn’t the Iron Range’s friend. It’s its enemy.
If the Iron Range realizes that, it’ll result in a happy ending for the Range because it’ll mean an end to DFL reign in St. Paul.
Technorati: Ken Martin, Iron Range, Blue Collar Workers, Twin Cities Elitists, Environmental Activists, Media Bias, Twin Cities Media, Larry Jacobs, Mindy Greiling, Ember Reichgott-Junge, DFL, Election 2014
Each afternoon, I receive a google alert to news involving Gov. Dayton. This afternoon’s alert is filled with articles talking about Gov. Dayton apologizing for MNsure’s failed rollout. The Miami Herald, the Kansas City Star and the Hilton Head Island Packet all ran with the AP article.
Here’s what he told county workers gathered in Alexandria:
“I want to thank you for the tremendous assistance you and your county staffs provided to MNsure, and I want to apologize for the excessive burdens it’s placed on you, your budgets and your people,” Dayton said. Calling MNsure’s rocky start his biggest disappointment so far, Dayton said, “It’s got better, and it will continue to get better, but it still has a ways to go.”
Without question, it’s polite to apologize for that crisis. Unfortunately, that doesn’t help families get health insurance in a timely fashion.
They don’t need apologies. They need the old system back. When I say that, I’m not talking about health insurance companies denying people with pre-existing conditions coverage. I’m talking about the programs Minnesota had in place that worked beautifully.
There’s no polite way of putting it. The Affordable Care Act, aka the ACA or Obamacare, was a major step backwards for Minnesotans. Possibly, it represents multiple steps backward from the pre-ACA standards. What’s taking months in the Dayton/DFL/MNsure regime, it took minutes in the Pawlenty/pre-MNsure regime.
This highlights something important worthy of the voters’ consideration. The number of things that are outright disasters during the Dayton administration dwarfs the number of things that were mismanaged during Gov. Pawlenty’s 2 terms in office.
Whatever you thought of Gov. Pawlenty’s policies, there’s no debating whether the policies that were implemented were executed properly.
Comparatively speaking, on any given day, Gov. Dayton might be seriously uninformed on major issues. For instance, when he signed the budget that ended the government shutdown in 2011, Gov. Dayton said that he didn’t know that Republicans had removed 2 provisions that he objected to. That means he could’ve signed the omnibus budget bills during the regular session and avoided the government shutdown.
Gov. Dayton claimed he didn’t know that the Vikings stadium bill that he personally negotiated contained a provision that allowed the Vikings to make money by selling PSLs, aka Personal Seat Licenses, to season ticket holders. Every stadium that’s been built over the last 15 years has that provision in it.
When Gov. Dayton visited FarmFest, he told farmers that he didn’t know that the Tax Bill that he personally negotiated included a new farm equipment repair sales tax.
Gov. Dayton said that he didn’t know MNsure had so many problems that were hurting Minnesotans. At what point do we say that Minnesota needs a governor who actually knows what’s going on in his own administration? Gov. Dayton’s ineptitude is frightening and it’s unacceptable.
Mothers attempting to get insurance for their newborn children deserve better than what Gov. Dayton’s been delivering.
Technorati: MNsure, Mark Dayton, Medical Assistance, Vikings Stadium, Personal Seat Licenses, Farm Equipment Repair Sales Tax, FarmFest, Government Shutdown, Incompetence, Tim Pawlenty, Jeff Johnson, MNGOP, Election 2014
This video is just another example of how Education Minnesota and the Alliance for a Better Minnesota can’t resist lying about Republicans:
The “cutting education to pay for tax breaks for big corporations” storyline was used against Tom Emmer in 2010. Back then, KTSP and FactCheck.org rated that ad as false. That’s because they’re polite. I’ll just state that they’re lying. It’s been proven false. Further, they knew it was false when they said it. That makes it a lie.
Like the DFL, ABM doesn’t have a positive agenda. Admittedly, they’ve lied about Minnesota’s economy, saying that Minnesota “is working again.” They said that despite the fact that Minnesota’s job creation has ground to a screeching halt, creating a pathetic 2,900 jobs this year. That’s right. This year, not this month. That isn’t a typo.
I wrote here that Gov. Dayton admitted that the MNsure rollout was a disaster, though he insists that it’s improving with each day. I wrote this article to highlight the fact that MNsure will be a major headache for years to come. That isn’t just my opinion. That’s the conclusion DeLoitte reached in their investigation.
Yes, Jeff Johnson voted for some unpopular things. He didn’t vote for “tax breaks for big corporations,” though. That’s part of ABM’s web of lies. If they were forced to tell the truth, 90% of their content for their ads would disappear. The best way to determine if ABM is lying is to determine if their lips are moving. If their spinmeister’s lips are moving, then it’s almost a certainty that they’re lying.
This is how bad MNsure still is:
During the assessment, 47 of the 73 sub-functions addressed were found either to be absent or not functioning as expected.
Two-thirds of the vital sub-functions either don’t exist or don’t work.
Gov. Dayton and the DFL can’t stand up to ABM, either. That’s because the DFL is funded by the same special interests that fund ABM. Specifically, the DFL is funded by Alida Messinger and the public employee unions. That’s who funds ABM, too.
That means Gov. Dayton and the DFL can’t call ABM out even if they wanted to. Then again, Gov. Dayton and the DFL don’t want to because the only thing they care about is winning at all costs.
If that means breaking the law, the DFL is fine with that. In fact, the DFL has broken the law, after which Ken Martin, the chair of the DFL, insisted that breaking the law was “a distraction“:
DFL lawmakers disagreed with the board’s ruling said that they are glad to put the matter to rest.
“Ultimately, it is best to set this distraction aside and allow our members to focus on governing,” DFL Party Chairman Ken Martin said.
It’s worth noting that Ken Martin was an integral part of ABM before Alida Messinger announced that she’d picked him as the next DFL chairman after she pushed Brian Melendez out the door.
The best way to deal with ABM is to vote for the party with a pro-growth, positive agenda. Voting for the people ABM targets won’t shut ABM up. It’ll just tell them that ABM is wrong for Minnesota.
If you want government of, by and for the special interests that raise your taxes and spend money foolishly, vote for ABM-approved candidates. If you prefer a prosperous Minnesota that works for families and the small businesses found on Main Street, then vote against ABM-approved candidates.
Technorati: Alliance for a Better Minnesota, Education Minnesota, Special Interests, Alida Messinger, Ken Martin, Mark Dayton, MNsure, Dayton-DFL Deficit, Unemployment, Tax Increases, DFL, Election 2014
According to Patrick Condon’s article, Gov. Dayton stopped short of officially announcing more tax increases. Instead, he said that the Legacy Amendment might be an option he’d consider to pay for Minnesota’s transportation needs:
The governor cited the 2008 Legacy Amendment, for which voters willingly approved a statewide sales tax increase to pay for spending on arts, outdoor recreation and water quality improvements, as potentially instructive to transportation boosters. “It showed that people will dig into their pockets for things they consider priorities,” Dayton said.
That’s Gov. Dayton’s hint that he’ll push for another tax increase instead of prioritizing existing transportation spending. Jeff Johnson took a more direct approach:
Johnson said he would redirect state money away from mass transit programs, including the planned Southwest light-rail line, which he said he would seek to cancel. Johnson said he also believes the state should do more borrowing to pay for transportation projects, and look for efficiencies at the state Department of Transportation.
We need more light rail like Minnesota’s entrepreneurs need more tax increases and more regulations. Apparently, Gov. Dayton still frequently visits LaLaLand when not living in the Governor’s Mansion:
Dayton criticized that last suggestion as “just fanciful,” saying it would be impossible to come up with the kind of money that’s needed.
Eliminating funding for the Southwest light rail project would free up tons of money that could be used to fill Minnesota’s potholes and fix Minnesota’s bridges. Spending a penny on the SWLRT is too much for that albatross.
That’s a stinging indictment of Gov. Dayton’s lack of priorities. He still hasn’t figured out (or he doesn’t care) that light rail is a waste of money. Gov. Dayton’s ‘let’s just throw more money at it’ approach to governing is what’s wrong with this state. That mentality is causing growing businesses to move to or start in North Dakota, Utah and Texas instead of Minnesota.
Under Gov. Dayton’s ‘leadership’, every Minnesotan’s taxes have increased, thanks to all of the regressive taxes passed in the Dayton-DFL tax bill. Despite increased LGA and “historic investments in education”, Minnesotans’ property taxes still went up. Significantly.
That’s before talking about how the Dayton-DFL budget has hurt job creation in Minnesota. In fact, it isn’t difficult to make the case that job creation has ground to a halt in Minnesota and that a Dayton-DFL-caused deficit is heading our direction in February.
The only bright spot during Gov. Dayton’s term in office was when the Republican legislature balanced Minnesota’s budget without raising taxes. That led to the most prolific job growth of the Dayton administration. As Gov. Dayton’s term comes to a close, job growth is disappearing, taxes are going up and businesses are leaving Minnesota.
That’s what all-DFL governance has bought us. God help us.
This AP article lists early the type of messaging we’ll hear from Gov. Dayton and the DFL:
For Democrats, back-to-school week brings a chance to brag about the launch of statewide all-day kindergarten where parents aren’t hit with fees or school districts don’t have to absorb costs of the extra classroom time. Over the next month, thousands of homeowners, renters and farmers will receive property tax refund checks from the state because of expanded eligibility and new money the Democratic-led Legislature and Gov. Mark Dayton designated for those programs.
That’s the glass-half-full version. Unfortunately, it omits some important details.
One of those details is how they paid for ‘free’ all-day kindergarten and the property tax refunds. Gov. Dayton and the DFL legislature paid for them by raising taxes on small business owners. Those entrepreneurs, in turn, paid for those taxes by laying people off, then hiring part-time employees who make half what the full-time employees made. That’s before factoring in the part-time employees’ loss of benefits.
The proof is already appearing. After the Dayton-DFL tax increases kicked in, job creation dropped dramatically. That drop wasn’t coincidental. Thus far this year, Minnesota’s economy created a pathetic 2,900 jobs. I’ll be perfectly clear. Minnesota’s economy isn’t creating 2,900 jobs each month. This year, it’s created 2,900 jobs.
In July, 4,200 jobs disappeared from Minnesota’s economy. Another 3,600 jobs were trimmed from June’s jobs report. That’s before talking about Minnesota’s revenues falling dramatically short of what’s needed to balance Minnesota’s budget. July’s revenues fell $69,000,000 short of what’s needed to balance the budget.
That means the Dayton-DFL deficit is speeding its way in our direction. It isn’t a matter of if we’ll have a deficit in 2015. It’s a matter of how big the Dayton-DFL deficit will be and how we’ll fix the Dayton-DFL disaster.
Hopefully, we’ll start by firing the incompetents who created this mess. That starts with terminating Gov. Dayton and demoting Speaker Thissen to Minority Leader Thissen. Next, it means spending less by spending money only on the things we need, not the things that the DFL’s special interest puppeteers push.
House Minority Leader Kurt Daudt, R-Crown, said the fact five of the past six monthly revenue reports have come in below the mark spells trouble. “They’ve taken a recovery and turned it into a flat-line at best,” Daudt said of Democrats. “It’s not me looking for a storm cloud. It’s an absolute fact and the realities of the policies they’ve put in place not working.”
Gov. Dayton and the DFL are bragging about the great Minnesota economy. Great economies, however, produce revenues that create surpluses, not deficits. The Dayton-DFL deficit is proof that Minnesota’s economy isn’t working.
Republicans aren’t happy with the state of Minnesota’s economy. They’re upset that the Dayton-DFL economy is failing hard-working Minnesotans. Republicans want to change directions so Minnesota’s economy can grow. That starts with getting PolyMet a reality. The jolt of revenues that will produce will balance Minnesota’s budget while lifting thousands of Minnesotans out of unemployment, poverty or both.
Gov. Dayton and the DFL have highlighted Minnesota’s relatively low unemployment rate. I explained in this post why the unemployment rate doesn’t prove the economy’s strength:
For the last 3+ years, the unemployment rate has been next-to-worthless as a benchmark of economic vitality. That’s because millions of people (literally) nationwide have quit looking for work, thereby artificially lowering the nation’s unemployment rate.
Another reason why the unemployment rate has become unreliable in terms of how strong the economy is is the number of people who’ve had their hours cut thanks to Obamacare. These are known as 29ers.
A person who is working a part-time low-paying job looks the same on the monthly jobs report as the employee who worked a high-paying full-time job a year ago. And there are lots of people working 2 part-time jobs who were making lots of money at their full-time jobs.
The Dayton-DFL deficit is speeding our direction. The Dayton-DFL jobs bust is already manifesting itself. Creating 2,900 jobs in 7 months is pathetic.
The question is whether voters will appreciate a handful of freebies more than they hate Minnesota’s struggling economy.
David Strom’s op-ed highlights the fact that Minnesota’s economy isn’t as strong as Gov. Dayton and the Alliance for a Better Minnesota have said it is:
Just a few years ago, more than 75 percent of adults in Minnesota were in the workforce. Now that number is 70.1 percent—yet that 5 percentage-point difference isn’t actually counted in the unemployment number, because unemployment only measures people “in the workforce.”
That’s thousands of people who fall into the category of “discouraged worker;” you and I probably think of them as having given up looking for work.
Gov. Dayton’s quote about Minnesota’s economy is utterly dishonest:
“The economy is improving and growing rapidly.”
Either Gov. Dayton isn’t honest or his grip on reality isn’t that tight. An economy can’t be “growing rapidly” when tens of thousands of people have given up looking for work. Rapidly growing economies are characterized by people jumping into the workforce:
Workforce participation peaked in the Clinton years, and slowly drifted down post 9/11. Finally, in 2006 it started rising again, as the economy recovered until the crash.
Since then, it has plummeted, and is still declining.
When an economy is really booming, the workforce expands because opportunity is out there. We simply aren’t seeing that, and people aren’t feeling it either.
There’s no doubt that Gov. Dayton and ABM will continue their mantra that Minnesota’s economy is getting stronger each day Gov. Dayton is in office. That it isn’t growing rapidly isn’t their concern because they aren’t worried about telling the truth. They’re only worried about getting Gov. Dayton re-elected.
There are other warning signs we should be paying attention to: tax revenues have come in under projections in 5 of the past 6 months, signaling that the economy isn’t doing as well as economists predicted. Much of that shortfall is due to poor income tax collections, indicating that people aren’t making as much money.
There’s little doubt that we’re heading for a significant deficit. The only question is how we’ll choose to fix it. Gov. Dayton raised taxes on “the rich” in 2013, which means he can’t raise their taxes again without cratering Minnesota’s economy. The DFL won’t cut spending, either, which means Gov. Dayton and the DFL will deplete the state’s Rainy Day Fund. Once they’ve depleted the Rainy Day Fund, which seems inevitable, then it’ll be a matter of whether Gov. Dayton and the DFL will raise taxes on the middle class.
Mark Dayton risks looking out of touch if he touts the Minnesota economy too much. Hardly anyone thinks things are “booming” right now, unless you count the people striking out for the Bakken oil fields. Most of us, in fact, feel like we are just hanging on, thankful for the job we have, and worried that it might not be there this time next year.
The other people that think Minnesota’s economy is booming are the 21,523 people who’ve been hired by the government. If you’re looking for work in the government, then St. Paul or DC is the place to be. If you want private sector work, however, Minnesota isn’t that great.
Technorati: David Strom, Center for the American Experiment, Workforce Participation Rate, Discouraged Workers, Mark Dayton, Unemployment, Deficit, Rainy Day Fund, Middle Class Tax Increase, Tax the Rich, DFL, Election 2014
Brian Bakst’s AP article contains this quote, which proves Gov. Dayton will lie if that’s what he thinks he needs to get elected:
Dayton sees it as “an indication of how desperate the Republicans are to find something to complain about because they know the economy is improving and growing rapidly.”
Gov. Dayton’s statement is, at minimum, fiction. At most, it’s an outright lie. If Minnesota’s economy is “growing rapidly”, as Gov. Dayton insists, why haven’t revenues met projections 5 of the last 6 months? If Minnesota’s economy is “growing rapidly,” why did revenues fall 6.6% short of projections last month?
There’s little doubt in my mind that Gov. Dayton will continue repeating that fiction the rest of the campaign. He isn’t worried that the media will question his statement. Brian Bakst certainly didn’t question Gov. Dayton’s statement. I haven’t seen other reporters question the Alliance for a Better Minnesota’s latest video that insists that Minnesota is working, either.
Let’s be blunt about this. Gov. Dayton hasn’t hesitated in insisting that Minnesota’s economy is doing well. ABM hasn’t hesitated in insisting that life under Gov. Dayton is a return to the DFL’s glory days. The Twin Cities media hasn’t questioned the voracity of Gov. Dayton’s statements or ABM’s lies.
ABM won’t say anything about the fact that DEED just announced the fact that Minnesota’s economy just lost 7,800 in the last jobs report. DEED reported that Minnesota’s economy shrunk by 4,200 jobs in July and that they’d overestimated the number of jobs created in June by 3,600.
Gov. Dayton certainly won’t talk about the verifie fact that Minnesota’s economy has create a pathetic 2,900 jobs thus far this year. Why would he when he knows that ABM will lie for him and the Twin Cities media won’t question him?
If Republicans don’t start questioning the media, Gov. Dayton and ABM, they’ll lose this highly winnable election. When I say Republicans, that’s everyone from Keith Downey to Jeff Johnson and Bill Quisle to legislative candidates like Dale Lueck and Jim Knoblach to the activists working to win over voters, then getting them to vote for Republicans.
“The Republicans are right in saying the economy still looks dismal relative to reasonable expectations,” Chari said. “The Democrats are also right in saying there’s only a limited amount in what a governor of a relatively small state can do when faced with headwinds this strong.”
Actually, this graphic says that a governor’s policies can have a rather dramatic impact on the economy:
That graphic is proof that job creation tanked after the Dayton-DFL tax increase went into effect. That graphic verifies as fact that Minnesota’s economy has created few jobs this year. While jobs were created by the hundreds when Republicans had the majority in the House and Senate, jobs are being create by the dozens since the Dayton-DFL tax increases took effect. In fact, Minnesota had negative job growth last month.
It isn’t surprising that Gov. Dayton and the Alliance for a Better Minnesota is telling whoppers about the state of the state’s economy. It’s up to Jeff Johnson and the Republican Party of Minnesota to swat down Gov. Dayton’s and ABM’s myths.
The statistics are there. All we have to do is tell the truth.
This summer, Gov. Dayton, the DFL and ABM (pardon the repetition) have talked up Minnesota’s economy well beyond reality. As part of their schtick, they’ve talked about how they’ve solved Minnesota’s deficits. They’ve done nothing of the sort.
Gov. Dayton’s and the DFL legislature’s appetite for spending is never satisfied. The gap between more and enough never closes. Whatever they’ve spent isn’t quite enough.
Last month’s revenues came in significantly short of the projection. It came in $69,000,000 short of the projection. That represents a 6.6% shortfall. Further, revenues have fallen short of projections 5 of the last 6 months, with July’s shortfall being the biggest shortfall thus far.
While this doesn’t prove that Minnesota is headed for a recession, it means that we’re likely heading for another significant deficit. With the likelihood of another deficit increasing with each revenue shortfall, the question then becomes how Gov. Dayton and the DFL would fix the deficit.
History often serves as a guide. In February, 2007, Minnesota had a $2,200,000,000 surplus. The Rainy Day Fund was full. The DFL legislature spent every penny of the surplus. When the economy slowed, the DFL spent down the Rainy Day Fund.
With revenues falling short of projection and with Minnesota’s economy shedding 4,200 jobs in July (plus revising June’s job numbers down by 3,600), there’s no question a significant deficit is on its way. The only questions left are a) how big will the deficit be and b) how soon will Gov. Dayton and the DFL admit that their budget didn’t fix the deficit.
This has ramifications beyond Minnesota’s economy, too. Gov. Dayton and the DFL have an incentive for not admitting that their policies have failed. If these economic figures got out during a gubernatorial debate at the Great Minnesota Get Together, Gov. Dayton and the DFL would be put on the defensive by Minnesotans.
I hope that Jeff Johnson highlights these economic statistics in his stump speech. If he starts highlighting the fact that Gov. Dayton’s tax increases have led to shrinking revenues and job cuts, he’ll paint Gov. Dayton and the DFL legislature into a corner.