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Minnesota DFL continue to place tax and spend ahead of taxpayers, families and businesses

Posted by David Anderson
April 29, 2009 at 1:22 am

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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.

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