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Class Warfare and Tax Increases will not solve Minnesota’s Budget problems.

Posted By David Anderson On March 29, 2009 at 12:58 am

Just like the Obama Administration who is leading the politics of class warfare and envy the Minnesota DFL is following suit.

The DFL took the Pawlenty Budget recommendations on the road as a campaign opportunity to take jabs at the Governor and allow the special interest groups they are beholden to parade themselves in front of the microphone on how they feel they are already stretched too thin, that the cuts will have dire consequences, and that not only can they not take cuts they need more government money to survive.

Was it a matter of convenience or coincidence that those dame DFL leaders had no proposal of their own because they were too cowardly to face these very same groups with their proposals. We now find that they really had no real plan but to hook their wagon to the tax the rich bandwagon of Obama even though the definition of what or who it is they will be taxing is always changing.

But now we now know as both the House and Senate DFL have introduced tax increases that are being sold as taxing the rich but in the end will cost all Minnesota taxpayers. The Senate has introduced a plan to raise taxes over $2 billion http://www.politicsinminnesota.com/2009/mar18/2492/senate-dfls-budget-outline-numbers-are-one-thing-politics-something-else-entirely and the House DFL plan raises $1.5 billion in the first biennium and another $1.4 billion in the second biennium on top of that for almost $3 billion in tax increases http://www.house.leg.state.mn.us/dfl of course the devil is all in the details.Well hold on for more tax increases as all those special interests could care that the economy is in the tank, that taxing the rich, businesses and all of us more are only going to make things worse. Case in point Education Minnesota’s press release chastising the House DFL proposal, with the following comment “This proposal still doesn't make education a priority,” Education Minnesota President Tom Dooher. http://www.educationminnesota.org/en/news/edmnupdates/housedflbudget09.aspx I am sure we will see even more crying, pleading and whining from the big city mayors and other local governments who can not seem to control their spending either and will mark my words cut fire, police and other essential services first!!!

But then what about the House proposal? Well those of us that already pay in more and more each year to the state coffers - plan on contributing even more. http://www.startribune.com/politics/state/41350927.html? Mortgage interest tax breaks would be capped at $420, education credits used for everything from tutoring to violin lessons would vanish, and a host of other deductions and credits would be eliminated. So to avoid some direct tax increases the House DFL plan eliminated many credits which will result in higher tax bills for most middle and upper class Minnesotans. Indeed, the changes would hit nearly every Minnesotan in some way. Refundable credits for day care would disappear, as would a recently enacted credit for farmers with cows afflicted with bovine tuberculosis.

But it doesn’t stop with the state - Counties could add an extra half-cent to the sales tax to help make up for lost state aid and add another revenue stream, under a proposal from Rep. Paul Marquart, DFL-Dilworth. http://minnesota.publicradio.org/collections/special/columns/polinaut/archive/2009/03/dfl_property_ta.shtml The DFL are also looking at rolling back the caps that were part of the budget deal from 2 years ago in which the DFL spent roughly $3 billion more in spending on top of the over $4 billion in transportation tax increases they implemented. What is worse yet is that the DFL plan is going to let local cities raise taxes with out voter approvalThe problem with all levels of Government in Minnesota right now (City’s, County’s and School Districts) is that these officials don’t understand the concept of fiscal responsibility, nor the notion of limited government. What the DFL in St. Paul is trying to do is bail out their local brethren by letting them create new sources of money to pay for their irresponsible local decisions.

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