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Does Minnesota have a spending problem or a revenue problem? That’s the question I keep asking fellow legislators as we work to find a balanced budget solution in 2005. I believe we got our answer to that question last week in the February economic forecast.
The forecast said Minnesota will face a $466 billion deficit over the next two years. Revenues are up more than 8 percent from where economists expected them to be, so why do we continue to see deficits every year? The answer is simple. State government spending increases faster than the economy.
If that is the case, it is clear that Minnesota’s deficits are caused by a spending problem – not a tax problem. State government’s spending should not increase faster than its people can support it. Period. If state government extends beyond its ability to pay for itself, which it clearly has, taxpayers should not be punished.
They say laughing at someone who tells lame jokes only encourages them to tell more lame jokes. The same could be said about the state budget. If we raise taxes and give government more money to spend, we will only encourage state government to spend more money. To me, that sounds like exactly the wrong way to solve a spending problem.
Sincerely,
Joe Hoppe
State Representative, District 34B