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State Representative Kelby Woodard
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7065
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NEWS COLUMN
Dayton vetoes budget bills
By Rep. Kelby Woodard
UPDATE: Governor Dayton has vetoed our budget bills and has made it clear that he is willing to shut down the government in order to force a tax increase on Minnesotans.
While I am optimistic that the governor will call us back to the Capitol before July 1 to avoid a shutdown, it is unfortunate that there is a need for a special session considering we presented the Governor with a balanced budget during the regular session.
The Legislature’s proposal for a modest 6-percent increase in spending over the current biennium allowed us to account for natural growth in the budget while still funding priorities. I believe most Minnesotans agree that a 6-percent increase in income during this tough economy is quite reasonable.
One problem with the governor's approach is that it perpetuates "chasing" tax dollars in a state that is already the seventh-most taxed state in the union (right behind California). The top 2 percent of wage earners currently pay over 41 percent of our state's income taxes according to the most recent Tax Incidence Study. The governor's proposed tax increase would make us the second-highest rate in the nation behind Hawaii.
I believe increasing the tax burden on Minnesotans will stunt our fledgling economic recovery by taking much-needed capital out of the private sector and result in diminished opportunities for prosperity.
Another problem with this approach is that without structural reforms, Minnesota will continue on a trajectory of double-digit increases in spending that will necessarily result in future tax increases. It may be tempting to think that our budget concerns can be solved simply by taxing others. The fact is that we must incorporate structural reforms to ensure sustainability and prosperity in our state.
I want to thank you for the input you have provided me with throughout the session and look forward to furthering those discussion as we debate the important decisions we face in the coming days and weeks.
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