This afternoon, Dan Ochsner interviewed Bill Blazer from the Minnesota Chamber of Commerce. The first topic, the only topic really, was Dayton’s ultimatum insisting that he won’t call a special session if the four legislative leaders don’t agree to an agenda limited to releasing the federal disaster relief funds and repealing the farm equipment repair sales tax. If Republicans insist that repealing the warehouse tax must be part of the agenda, Gov. Dayton says he won’t call a special session.

Blazer told Ochsner that nothing is nonnegotiable. He hinted that the Minnesota Chamber would continue to lobby for including the repeal of all of the business-to-business sales taxes. Twenty-four hours ago, I thought Gov. Dayton was bluffing. I’m rethinking that position in light of the fact that July’s revenues missed projection by 2.2%. They expected to collect $936,000,000 this month. The state collected $915,000,000, a deficit of $21,000,000.

Gov. Dayton insisted that the warehouse tax will be repealed during next year’s regular session. I’m not sure it will. Frankly, it’s irrelevant. If it’s repealed, another tax will be created or raised. With this DFL legislature and a Democrat governor, it’s just a game of whack-a-mole. Kill one mole, another pops its head up. Kill that mole, a different mole pops its head up.

Last night at the BPOU fundraiser, one legislator told me that Minnesotans should brace for more tax increases. This legislator said that’s just who the DFL is. It isn’t just what they do. It’s part of their DNA. They’ve got a lengthy list of things that their special interest allies want to pay for. They’ll only quit raising taxes if their special interest allies suddenly run out of things on their wish list.

That won’t happen, which means the only effective way of stopping the tax increases is to defeat them, to remove the gavels from their hands and to get a conservative governor in office. Democrats insisted that making historic investments in education and transportation would spark an economic revival.

Cargill saw that historic investment in education and left for Colorado. Red Wing Shoes saw the DFL legislature pass a warehouse tax and Gov. Dayton sign it into law. Then they lobbied for repealing the tax. Gov. Dayton hinted that it would get repealed during the regular session. With a major deficit looming, Red Wing must be seriously thinking about building their warehouse in Wisconsin. They’d be foolish not to.

Yes, we need a well-trained workforce. Yes, we need a world-class transportation system. Unfortunately, that isn’t enough. Minnesota needs a world-class tax and regulatory environment, too. Right now, we don’t have a world-class anything. That’s why businesses and people are leaving Minnesota.

If we don’t change that, Minnesota will be a cold California, a state with great natural resources and a tanking economy.

Tags: Special Session, Special Interests, Farm Equipment Sales Tax, Federal Disaster Relief, Mark Dayton, DFL, Bill Blazer, Minnesota Chamber of Commerce, Business-to-Business Sales Tax, Cargill, Colorado, Red Wing Shoes, Wisconsin

4 Responses to “The DFL’s neverending tax hikes”

  • Chad Q says:

    Is education and transportation really an investment we need to be making seeing how we are not seeing a return on that investment? How much more money do we need to pour down those rat holes before we say enough? More money does not mean a better anything.
    Cy Tao said it best a few years ago, when he said “when the DFL wins, we take your money and when the GOP wins, you get to keep your money.” The DFL is only living up to that statement.

  • Gary Gross says:

    Cy Thao’s quote wasn’t reported in a newspaper. It was reported here first.

    It isn’t fair to say education & transportation aren’t important to a strong economy. They are. It’s that the current transportation system & current education need a major overhaul to be effective.

    Where I’ve strongly disagreed with the DFL is that we need a strong educational system, a 21st century transportation system in addition to competitive tax & regulatory systems.

  • Chad Q says:

    Never said education and transportation were not important, just asked how much more money will we dump down the rat holes just hoping for some positive results. The DFL’s priorities for both are so screwed up that giving them more money for either is just a huge was of taxpayer money. All day daycare (kindergarten)and building trains that no one rides except on gameday are benefiting no one except for the unions.

  • walter hanson says:

    Gary:

    Here’s an idea for a post. I heard on the radio during a news break that in July Minnesota’s unemployment held steady and the largest source of new jobs was government.

    Walter Hanson
    Minneapolis, MN

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