The sticker shock of the DFL’s 2014-15 biennial budget will be harsh and immediate. That’s because it will likely top $40,000,000,000 for the first time in state history. The DFL’s budget will include at least 2 tax increases. It will attempt to pay off all of the DFL’s special interest allies with taxpayers’ hard-earned money.
First, it’s inevitable that the DFL’s budget will raise taxes on “the rich” because, in their warped thinking, “the rich” aren’t “paying their fair share.” For at least a decade, the DFL has let that social policy masquerade as economic policy.
For at least as long, the DFL has said that Minnesota’s tax system needs to be more progressive. Despite that long-espoused policy, the DFL’s true believers will vote to change the sales tax to include clothing. The most charitable estimates for that change is that it will generate an additional $750,000,000 in revenue.
As for Gov. Dayton’s income tax increase, it’ll be fortunate to generate an additional $2,000,000,000 in revenue for the biennium. That’s assuming that Gov. Dayton keeps the top tax bracket at 10.95% on couples making $130,000. That isn’t a safe assumption. In 2011, the highest state tax rate was 11%, a figure Gov. Dayton didn’t want to exceed.
Now California has raised the top tax rate to 13%, giving Gov. Dayton additional latitude. Being the tax-raising advocate that he is, he’s certain to raise the top income tax bracket to more than 12%. He’ll do it because he’ll need the additional revenue.
While Gov. Dayton, Sen. Bakk and Rep. Thissen will pay down a bit of the K-12 school shift, the DFL won’t pay much of it back. The lobbyists with the biggest smiles will be the ones who lobbied for making LGA whole again. R.T. Rybak and Chris Coleman will have tons of additional money to spend on $50,000 a piece drinking fountains. R.T. Rybak might even have enough money to hire back the firefighters he terminated when he kept the bike trail coordinator.
Higher Education figures to be another big winner, followed by taxpayer-funded charities. Inner cities will get boatloads of additional money. The DFL will ‘justify’ the spending as a way to reduce crime but it’s actually money that will pay off the DFL’s precinct organizers.
Higher Education funding shouldn’t see a penny in additional spending until MnSCU stops hiring university presidents their cronies to high-paying administrative jobs. That’s a massive ripoff to the taxpayers. What’s worse is that it doesn’t add a thing to the quality of educational outcomes.
Until Central Lakes Community College drops worthless programs like Floral Design, the state’s taxpayers will be getting ripped off while students accumulate more student loan debt.
When it’s all settled, the DFL budget will be a masterpiece in wasting taxpayers’ money. Ultimately, spending will be cut because actual revenues will fall short of the DFL’s projections. When the DFL’s ‘experiment’ is implemented, it’ll be clear that the DFL’s ideas hurt businesses but they don’t create jobs.
They just give big city DFL mayors big smiles.
Tags: Budget, Deficits, Tax Increases, Income Tax, Sales Tax, LGA, Pork, Mark Dayton, Tom Bakk, Paul Thissen, R.T. Rybak, Chris Coleman, Higher Education, Floral Design, DFL