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My jaw dropped when I read this article, especially when I read “State economic officials are blaming slowing economic growth nationwide, impacts of the 2017 Minnesota Legislature’s actions and unknown impacts of federal tax reform for the projected deficit.” GDP was just revised upward. Wall Street economists are predicting 4% growth for the 4th quarter. They’re also predicting a continuation of strong economic performance for 2018.

Let’s state this clearly. Gov. Dayton’s policy priorities aren’t pro-growth policies. They didn’t look that bad compared with President Obama’s policies but they’re looking terrible compared with the economic performance thus far under Trump. Under Trump, the economy is growing. Consumer confidence is sky-high. Unemployment is dropping fast. Jobs are getting created at a faster rate than during the Obama administration.

Commissioner Frans’ spin that the nationwide economy is slowing is utter nonsense. It doesn’t have anything to do with reality. Then there’s this:

“Considerable uncertainty remains about what U.S. policy changes will be enacted and their impact on the economy,” state officials wrote in their forecast. “At this time, it is unclear what tax law changes will emerge from the U.S. Congress and how those changes will affect the federal deficit and economic activity. Congress faces imminent deadlines for funding the government and for raising the debt ceiling, and possible changes to trade and immigration policy also bring uncertainty.”

What a bunch of BS. First, the tax cuts are coming and they’ll have a positive impact on the economy. They won’t have a negative impact on the deficit. In fact, revenues will increase significantly when money is repatriated. Check out what Newt Gingrich had to say about the economy in this interview:

Economic growth is essential to fixing the deficits. Raising taxes doesn’t create jobs or increase revenues. Based on these basic economic principles, it isn’t difficult to see that Commissioner Frans is in a difficult position. If he admits that economic growth in Minnesota is lagging behind nationwide economic growth, DFL gubernatorial candidates will have to campaign against that comparison. That’s political suicide. It wasn’t difficult for the DFL to look good compared against the Obama administration’s economic growth. It’s virtually impossible for the DFL to look good compared with the robust economic growth of the Trump administration.

Gov. Dayton insisted on too much spending. Now he’s trying to blame the deficit on the GOP tax relief. Here’s a hint to Gov. Dayton: if there’s a deficit, dip into the state’s oversized Rainy Day Fund, which currently sits at $1.6B. To Republicans: there’s no need to renegotiate the tax cuts. If you can’t use the Rainy Day Fund for rainy days, then it’s worthless. I’d issue a statement saying that this is precisely why a Rainy Day Fund was created.

The GOP legislature should pass a bill funding the legislative branch. The minute Gov. Dayton signs it, I’d adjourn sine die.

3 Responses to “The DFL’s budget spin”

  • Chad Q says:

    There’s going to be a budget deficit because the Dayton DFL dopes spent all the money in previous years on programs that need continual sources of money and raised taxes and smart people like me started putting more of our money into tax free accounts so the greedy DFL couldn’t spend it. If I’m smart enough to do that, just think of how much money the rich are not allowing the government to have!

  • Gary Gross says:

    Add to that the outmigration of people & you’ve got a crisis waiting to happen.

  • John Palmer says:

    Remember DFL tax and spend policies have created an economic climate that produces lower GDP growth than the rest of the country. It’s the years of bad policy that have left the state at risk of decline.

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