Don Davis’ post about the DFL’s budget is enlightening. There isn’t any doubt that the DFL wants to raise taxes. The question is which taxes they want to raise and how much they’d raise taxes by. Then there’s the question about getting the House to agree with the Senate and the legislature to agree with Gov. Dayton.
There’s still no doubt in my mind that it’ll get ironed out. Similarly, there’s no doubt that the DFL’s tax increases will stunt job growth. There’s no doubt that some businesses will expand outside of Minnesota rather than in Minnesota.
Bill Glahn thinks that the DFL will pass a budget on time. That said, he thinks it’ll need fixing:
The budget will be passed before the “end” of session. Even if they have to cover up the clock to pretend midnight has not passed, even if they have to come back and fix it in special session.
The budget and much else will be passed at the last second, with bare partisan majorities, in massive bills that no single human being will have read all the way through before they are signed into law.
It will all be hailed as a once-in-a-generation political triumph. Until…months later…when someone gets around to reading the bills passed…and we all wonder: now what?
The thing isn’t only about the confusion within the DFL, though that’s certainly part of the problem. The biggest problem is that the DFL doesn’t have a pro-growth economic agenda. The DFL’s hostility towards businesses is getting noticed by businesses. The Minnesota Chamber of Commerce gets that. Here’s part of what Jason Bernick, a member of the Minnesota Chamber of Commerce said recently:
I’ve often heard Governor Dayton say that “you’re entitled to your own opinion but you’re not entitled to your own facts.” I have a great deal of respect for Governor Dayton as he has always been a good listener who has maintained a respectful discussion. However, since the beginning of this session, I have noticed this quality has been degrading and becoming disrespectful in Governor Dayton.
Teresa Bohnen, the president of the St. Cloud Chamber of Commerce, has talked with 4 companies who are thinking of expanding. During Gov. Dayton’s townhall meeting, she spoke out against the jobs that would be lost if the legislature creates a fourth tier of income taxes. She said that these businesses might expand elsewhere if the legislature passes that higher income tax tier. Gov. Dayton, like the DFL legislature, doesn’t take these warning signs seriously.
In the end, the omnibus spending bills will be significantly bigger than those passed by the GOP legislature. The Tax Bill will include some major increases, some of which will hurt convenience stores. That isn’t the right path to prosperity.