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If I gave people the responsibility to put together a blueprint that’d Minnesota’s economy, it’d be difficult to do that quicker than the DFL, under the ‘leadership’ of Gov. Dayton and Rep. Ryan Winkler.

Between Gov. Dayton’s sales tax increase, which hits cities and the middle class hardest, Gov. Dayton’s income tax increase, which won’t hit ‘evil corporations’ but will hit small businesses and Rep. Winkler’s increase in the minimum wage, the DFL is quickly putting together a blueprint that’ll raise property taxes, incentivize entrepreneurs to leave the state and cause unemployment among young people to spike. Rep. Winkler’s delete-all amendment to HF0092, is particularly stunning. Here’s the language that’s particularly stunning:

1.14 (b) Except as otherwise provided in sections 177.21 to 177.35, every large employer
1.15 must pay each employee wages at a rate of at least $5.15 an hour beginning September
1.16 1, 1997, and at a rate of at least $6.15 an hour beginning August 1, 2005. Every small
1.17 employer must pay each employee at a rate of at least $4.90 an hour beginning January 1,
1.18 1998, and at a rate of at least $5.25 an hour beginning August 1, 2005:

1.19 (1) every large employer must pay each employee wages at a rate of at least:
1.20 (i) $8.35 per hour beginning August 1, 2013;
1.21 (ii) $9.45 per hour beginning August 1, 2014;
1.22 (iii) $10.55 per hour beginning August 1, 2015; and
1.23 (iv) the rate established under paragraph (d) beginning January 1, 2016; and
1.24 (2) every small employer must pay each employee at a rate of at least:
1.25 (i) $6.50 per hour beginning August 1, 2013;
1.26 (ii) $7.75 per hour beginning August 1, 2014;
1.27 (iii) $9.00 per hour beginning August 1, 2015; and
2.1 (iv) the rate established under paragraph (d) beginning January 1, 2016.
2.2 (c) Notwithstanding paragraph (b), during the first 90 consecutive days of

2.3 employment, an employer may pay an employee under the age of 20 years a wage of $4.90
2.4 an hour. No employer may take any action to displace any employee, including a partial
2.5 displacement through a reduction in hours, wages, or employment benefits, in order to hire
2.6 an employee at the wage authorized in this paragraph
at least:
2.7 (1) $6.07 per hour beginning August 1, 2013;
2.8 (2) $7.24 per hour beginning August 1, 2014;
2.9 (3) $8.41 per hour beginning August 1, 2015; and
2.10 (4) the rate established under paragraph (d) beginning January 1, 2016.
2.11 No employer may take any action to displace an employee, including a partial
2.12 displacement through a reduction in hours, wages, or employment benefits, in order to
2.13 hire an employee at the wage authorized in this paragraph.

It’s one thing to debate the merits of the minimum wage. It’s quite another to include in the minimum wage bill language that tells entrepreneurs that they can’t cut employees’ hours or benefits while dramatically increasing the employees’ wages.

If Rep. Winkler’s amendment isn’t gutted, these rules would go into effect on August 1, 2013. The spike in youth unemployment will start just prior to that. That’s because the hospitality industry will get hit hardest by Rep. Winkler’s legislation. HINT: The DFL isn’t the friend of young people.

Officials from Plymouth and other cities have testified that the additional expenses they’ll incur will almost zero out the LGA increase. That’s if they’re getting LGA. If they aren’t, these smaller cities will get hit exceptionally hard by Gov. Dayton’s sales tax increase.

This isn’t the blueprint for prosperity and job creation. It’s the blueprint for stagnation, higher property taxes and artificially high project costs.

UPDATE: Check out Mitch’s post about Rep. Winkler’s Brezhnev-style economic theories.

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5 Responses to “The Dayton/Winkler/DFL blueprint for disaster”

  • J. Ewing says:

    Ah, but you forget that their intentions are good. That is the only measure of merit that liberals ever use. When they accept measurement at all. Generally they prefer to pontificate rather than actually govern.

  • Gary Gross says:

    Jerry, I didn’t forget that. I don’t give a damn if the DFL’s intentions are totally saintly. I give a damn about the results.

  • Nick says:

    “If Rep. Winkler’s amendment isn’t gutted, these rules would go into effect on August 1, 2013. The spike in youth unemployment will start just prior to that. That’s because the hospitality industry will get hit hardest by Rep. Winkler’s legislation. HINT: The DFL isn’t the friend of young people.”

    What about a six-fold increase in alcohol taxes that the DFL is proposing? This will most certainly lead to layoffs in the restaurant and hospitality industries:
    HF 885 and SF 340
    HF 885: https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0885&ssn=0&y=2013
    SF 340: https://www.revisor.mn.gov/bin/bldbill.php?bill=S0430.0.html&session=ls88

  • Bill C says:

    “This isn’t the blueprint for prosperity and job creation. It’s the blueprint for stagnation, higher property taxes and artificially high project costs.”

    This is also the blueprint of getting people started as early as possible on reliance of government entitlements like unemployment. In the witches voice: “All the better to ensure you keep voting for ME, my pretties!!!”

    I said the day after the election that now that the DFL has total control of our state government, they were going to start feeling their oats. I had no idea they were going to go this overboard with everything. If the MN GOP can’t take back one of the houses or the governorship in 2014, this state will have an outflow of people the likes of which have never been seen and will make California’s emigration seem mild.

  • eric z says:

    The sky is falling.

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