Minnesota government spending two years ago was on autopilot as the DFL in Minnesota spent almost $3 billion more in new spending not including the $6 billion in tax and fee increases they passed for transit and some transportation in Minnesota. Now with the economy in decline, families losing their jobs, businesses on the verge of closing what do we get from the DFL? Well more of the same of course.

Let’s just look at HF2323 which passed the House recently which without a last moment switch by Rep. Tom Rukavina would have failed in the House. Of course the DFL will spin this as only the rich will pay but that is the furthest thing from the truth - we all will pay. This bill has the following tax increases:

Income Tax: $469.5 million income tax increase
Cigarette Tax: $210 million tax increase
Alcohol Taxes: $209.4 million tax increase
Boats, ATVs & Snowmobiles: $10.5 million tax increase
iTunes Tax: $4.23 million tax increase
Gift Tax: $15 million tax increase
Yanking the Gas Tax Credit: $60.5 million
Local Option Sales Tax: $391 million

This bill shows that Democrats have two priorities: Raising taxes and protecting the welfare state. Jobs are not a priority for Democrats. Their tax increases would hit thousands of small businesses that are trying to keep the employees they have and add more. They call massive spending investments rather than what they are; more unnecessary spending.

Where else is the DFL’s priorities? Good question! While the DFL passed tax increases in the neighborhood of $1.5 billion, they also showed that they can not control spending. HF1362 which just passed the House floor increases Health and Human Services spending by $2.2 billion. The so called jobs bill SF2081 sends the wrong message by forgiving a $32.75 million loan to the City of St. Paul so the city can build a new hockey rink across from the Excel Energy Center. It also increases a so-called “Workforce
Enhancement Fee” on employers that is an absolute job killer. The DFL are telling Minnesotans it is okay for government to build a hockey rink at the same time they are cutting funding to veterans services, Public Safety.

But these taxes are not on just the rich as the DFL like to talk about. Once you hit the $30,000 to $40,000 income levels, there are more losers than winners in the Democrats tax increase. The Democrat bill not only raises taxes on those areas mentioned above, but it also yanks JOBZ tax benefits and allows every county in the state to impose a new sales tax.

The DFL tax bill takes away the mortgage interest deduction, K-12 credit, K-12 subtraction, property tax deduction organ donor credit, and child care credit. Some of these are partially offset by new substantially smaller credits or cuts, but by also repealing the gas tax credit they passed along with their gas tax increase in 2008, Democrats show that they cannot be trusted to keep these credits and may repeal them in the future.

One thing is certain that the DFL priorities are not families, taxpayers and businesses in Minnesota. All the DFL in the House have done is created a climate of more taxes and assault on your checkbook by protecting their special interests and increasing government spending in St. Paul at a time we can least afford it.

 House passes State Government $579 million grab bag bill

 http://www.startribune.com/politics/state/43617912.html?

Among other items it includes:  provides health insurance to domestic partners, including same-sex partners; cuts high-level political appointees; takes away Lt. Gov. Carol Molnau's car; and sells naming rights to almost every state building.

The Minnesota House passed a bill last Thursday that keeps school funding flat over the next two years, almost guaranteeing deep cuts in school district budgets.

http://www.startribune.com/politics/state/43556262.html?

Following a Senate vote, the Minnesota House along with a party line, plan to raise substantial taxes on every Minnesota family, taxpayer and business in Minnesota.

http://www.startribune.com/politics/state/43704772.html?

To start with lets use a few of the absurd examples of DFL fuzzy math. In the analysis done on the DFL tax reshuffle in March the following example was used:

“The mortgage credit would equal 7 percent of eligible mortgage interest up to $420. For example, a family with $50,000 in income that pays $10,000 in mortgage interest would receive a $420 credit. Under current law, Lenczewski said the deduction would be $131.” Is Lenczewski smoking something? Does she think that is a real world example - a family making $50,000 is going to be paying $10,000 in mortgage interest? Hate to see what the P&I is then. Then there is the elimination of the K-12 education and health insurance credits just to name a few of the examples to produce further shifts of redistribution down to those that pay no net taxes to begin with.

On the corporate side; businesses would see the removal of the foreign royalty subtraction or the research-and-development credit. Elimination of JOBZ and biotech zones which I am not a big fan of anyway. This is all before the DFL propose their tax hikes. Hold on to your wallets taxpayers, the case to drain your already light wallet is coming to a tax increase proposal near you. Its back to typical class envy and warfare and promising to give some more while taking a whole lot more from someone else.

But the DFL have made promises and more promises of spending they can not keep without increasing revenue. They keep telling everybody they will raise taxes on everybody but you ….to get your vote then increase your taxes and say they had no choice. Remember the increase in metro sales tax? Remember the billions in tax and fees raised all in the name of transit (oops I meant transportation, but then I would be lying)? Or how about increasing the sales tax temporarily (like 25 years is temporary) for water, conservation, arts…etc? And boy don’t even think about using that revenue stream or those lobbyists will have your head like somehow that is their tax dollars not yours. So like expected we have seen the House and Senate DFL propose over $3 billion in tax increases and $2 billion respectively and that does not count the out years where more are proposed. Can we afford to raise taxes when your neighbors, family and friends are already losing their jobs, their homes and having a hard time making ends meet?

So getting back to the House DFL tax plan, Lenczewski said that beneficiaries under her plan will compete with others for a piece of the state budget instead of getting special tax treatment. So instead of making this a business decision that all can benefit from she is creating a government handout that will lead to more lobbying and government picking winners and losers. Just what we need in Minnesota.