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State Representative Paul Marquart
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-6829
For more information contact: Michael Howard 651-296-8873
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GOP puts budget that increases property taxes on the credit card
Saint Paul, Minnesota – DFL legislators voted in unison this evening against the Republican budget plan to borrow $700 million in future revenues to balance our current deficit. This unprecedented budget gimmick was included in the House omnibus tax bill, which also eliminated the Market Value Homestead Credit and increased property taxes on nearly every Minnesota homeowner and renter.
“While I support Governor Dayton’s statesmanship and courage to compromise to end this shutdown and get Minnesota working again, I cannot support this irresponsible Republican budget plan," said State Rep. Paul Marquart (DFL – Dillworth). “The majority party is borrowing from our kids and our future, and pushing huge property taxes on the backs of families, seniors and small business owners.”
Marquart said the insistence on borrowing and property tax increases was disappointing, given a much fairer solution was available.
“We had a different option – one that was fair, permanent, and did not create new debt or new property taxes,” said Marquart. “Instead of giving a bill to our children and raising property taxes on seniors and businesses, we could have asked the very wealthiest Minnesotans to pay their fair share. Unfortunately, the majority was willing to shutdown our state in order to protect these wealthy special interests.”
Marquart said the extreme reliance on borrowing, K-12 education shifts, and gimmicks will leave a $5.2 billion deficit in the next budget.
“It is disappointing that despite a record government shutdown we still haven’t solved our budget problem, only kicked the can down the road,” said Marquart. “We need a permanent solution, not more debt that our children will be paying off for decades.”
The tax bill will increase property taxes by $350 million in 2012.
“Taking away the homestead credit is a direct tax increase on homeowners,” said Marquart. “It’s beyond belief the GOP would take away this long time and cherished benefit from homeowners.”
Marquart’s concerns with the GOP tax plan include:
• Appropriation bonds/ tobacco bonds: Contains irresponsible, one-time borrowing to pay for ongoing spending and does not solve the systemic budget problem. Minnesota will likely pay more than $1 billion over several decades to pay of the interest from this one time loan.
• Protects 7,700 people earning over $1 million per year: (about half of whom are Minnesotans) from paying one penny more while middle income Minnesotans and small business owners will see increased property taxes.
• Higher property taxes: Non-partisan research estimates that the bill will increase property taxes by $376 million in 2012.
• Nearly all renters (about 300,000) will have their Renters’ Credit cut, including 82,000 senior and disabled renters.
• Slashes funding for direct and indirect property tax relief programs: eliminates the Market Value Credit, cuts LGA, and cuts CPA.
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News Items
- Marquart Selected to Chair House Education Finance Committee - (Posted: 2012-11-16 00:00:00)
- 2012 SESSION UPDATE - (Posted: 2012-05-15 00:00:00)
- May 15th deadline to pay property taxes stings Greater Minnesota homeowners, business owners and farmers - (Posted: 2012-05-15 00:00:00)
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