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Legislative News and Views - Rep. Tom Hackbarth (R)

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Transportation, tax relief and bonding

Thursday, May 12, 2016

Dear Neighbor,

Time is running down on the 2016 session and, once again, Democrats are using their proposed gas-tax increase as a roadblock for Republican bills that would help middle-class Minnesotans.

Democrats were so insistent on raising the gas tax by at least 16 cents per gallon last year that they refused to pass Republican proposals to provide tax relief such as ending the state's practice of taxing seniors' Social Security checks. They also refused to pass a Republican transportation plan that would put taxes Minnesotans are already paying on car parts, auto repairs, vehicle leases, and rental cars toward improving our roads and bridges.

This year, House Republicans are again proposing tax relief and a long-term plan for our roads and bridges. And, once again, the Democrats' insistence on raising the gas tax by historic amounts is bogging down negotiations and threatening to stop legislation that would help Minnesotans.

It's not good enough for Democrats that the state already has over-collected $900 million from taxpayers than our budget requires for this biennium. They raised taxes by all-time records just a few years ago and are back at it again. Not only do they keep pushing for a gas-tax increase, but Senate Democrats passed a bill to increase payroll taxes and to tax more Internet sales.

On top of this, we recently learned Democrats in the Legislature are joining the governor in calling for a bonding bill of around $1.5 billion this year. That dollar figure is far too high, especially when you consider state payments on debt have risen from $409 million in 2008 to $752 million in 2015. Or, put another way, Democrats want to now borrow roughly the same amount as our payments on debt service this biennium.

Look for more as things develop at the Capitol.

Sincerely,

Tom

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