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State Representative Bob Dettmer
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4124
For more information contact: Austin Bleess 651-296-5529
OP/ED COLUMN
Bad Priorities: $2.2 Billion Dollar Budget Surplus = Tax Increases?
By Bob Dettmer
State Representative
District 52A
It is crunch time at the legislature. After months of work, countless hours of committee meetings, and multiple all-nighter floor sessions the legislature will now begin finalizing our state budget for the next two years. I would have thought that the debate about funding this year would have been a little less stressful given the state’s $2.2 billion budget surplus.
This is certainly the premise that Governor Pawlenty and House Republicans have been working under. The Governor’s budget proposal represents a 9.8% increase for a total state budget of $34 billion dollars. House Republicans support the Governor’s budget proposals and have also proposed funding for permanent property tax relief, income tax deductions for the bottom tax brackets, increased benefits for saving for college and health care tax reforms all within our current budget surplus. $2.2 billion dollars is enough.
At least it is enough for some people. House Democrats clearly must disagree. They have rolled out ten major spending bills so far. These bill spend too much money, raise fees, contain very controversial policies, and many of them raise taxes. The Governor has said that he will veto many of these bills. The last major budget bill to be passed is the Tax Bill. This is the mother of all bills this session, and of course it raises taxes!!
Once again, the $2.2 billion dollar surplus is enough. Yet the heart of the DFL tax bill is an increase in income taxes. The bill would create a fourth income tax tier taxed a 9%, which would be one of the highest rates in the country. This bill would raise taxes on 59 percent of small businesses owners in Minnesota. The bill would also eliminate tax provisions used by some of Minnesota’s largest and most successful companies and job providers. This tax bill is a job-killer that raises taxes on individuals and on businesses big and small alike. I remind you that the state has a $2.2 billion dollar surplus. This bill proposed to raise taxes by $784.1 million dollars. Here are a few of the low-lights of this bill.
• $452.7 million in extra income taxes on small businesses and working families.
• A “gift tax” of $7.6 million.
• $297 million in taxes on Minnesota’s most successful and largest job providers
• An additional $18.2 million in tobacco taxes.
• $4 million in taxes on construction and independent contractors.
• $4.6 million in extra income taxes from people who are no longer Minnesota residents.
I joined all my House Republican colleagues in a bipartisan vote in opposition to this bill. I firmly believe that a $2.2 billion dollar budgets surplus, 9.8% growth in government, and a $34 billion dollar state budget is certainly adequate to fund our priorities. There is simply no need to offer job-killing and oppressive income tax increases in order to pay for the reckless spending demands of special interests. $2.2 billion dollars is enough.
This tax bill will be vetoed and rightfully so. The Governor sees no need for tax increases, I see no need for tax increases, and I recall that last campaign season Democrats said they saw no need for tax increases. Yet here we are three weeks from the end of session and the DFL plan for spending is dependant upon a job-killing tax increase. The party-line vote by House Democrats to pass this tax increase does not represent the kind of bi-partisan cooperation that we need reach to a budget solution. I am committed to working across the aisle with my fellow representatives who agree that we can adequately live within the means of our $2.2 billion dollar surplus and our $34 billion dollar budget.
News Items
- LIMITED SPENDING AND COMPETITVE TAXES GROW OUR ECONOMY - (Posted: Jan 11 2013 3:29PM)
- BOB DETTMER SWORN IN TO FOURTH TERM AS STATE REPRESENTATIVE - (Posted: Jan 11 2013 3:28PM)
- April 5 Legislative Update - (Posted: 2012-04-05 00:00:00)
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