To the editor,
You would think our string of economic reports showing surplus revenue in Minnesota would serve as a wet blanket on proposals to increase taxes.
How long can Gov. Mark Dayton and the new Democrat majorities continue clamoring for tax increases on all Minnesotans when it is becoming more and more clear they are unnecessary? The new economic forecast from Minnesota Management and Budget is the fourth consecutive report to show more revenue than previously projected, for a combined $2.8 billion dating back to November of 2011.
A $295 million positive balance is projected for fiscal year 2012-13. We also have significantly reduced the projected shortfall for 2014-15, from $1.1 billion down to $627 million.
Most of the surplus – $290 million – will be used to repay delayed K-12 funding. The 2011 shift already has been fully repaid, but debt still exists from budgets enacted under the previous Democrat majority and Gov. Tim Pawlenty.
State revenue is projected to grow by 3 percent in the upcoming biennium. All we need to do to balance our bottom line is to craft a budget which stays within the comfortable limits of 3-percent growth. We can resolve our budget without raising taxes.
The problem is Dayton wants to increase spending by 7.6 percent and raise taxes by $3.7 billion to pay for it. Democrats in the House and Senate have not issued their budget proposals, but already are introducing plans to increase our taxes. Maybe the most over-the-top proposal would raise taxes on some liquor by 1,000 percent. The tax on a gallon of wine would increase from $3 to $30, for example.
Democrats wrapped last fall’s campaign around a plan to make the “rich” pay their “fair share.” The tax increases being pushed by Dayton and fellow Democrats would impact us all.
UNIONIZED DAYCARE
A new bill would establish a “statewide unit for all family child care providers” in Minnesota. Any licensed or unlicensed child care provider who has received a state subsidy in the past year would be eligible to vote on the collective bargaining unit. This issue also arose in 2011 when Gov. Dayton attempted to use an executive order to conduct a union vote for licensed childcare providers. Ramsey County Judge Dale Lindman later ruled that the governor’s directive was an “unconstitutional usurpation of the legislature’s constitutional right to make or amend our laws.”
I have not heard from anyone in our district who favors this initiative and do not plan to support it.
GOVERNOR'S TAX PLAN
On Thursday, the Minnesota Taxes Committee began hearing testimony on Governor Dayton’s budget proposal, which would increase state spending by $2.5 billion, and increase taxes by $3.7 billion. Small-business owners were among the first to testify, telling the committee that the business to business tax provision in the proposal would force them to raise prices on consumers, cut jobs, or close their doors.
One testifier said, “I can’t believe my own state is going to take us out of business.” Another testifier pointed out they could easily move my business out of state and Minnesota would lose the revenue they generate.
Anxiety continues to build in the business community and among taxpayers in general. I will continue advocating for a responsible, affordable budget which does not include tax increases in the name of government growth.
The state is receiving increased revenue without raising taxes. We are projected to have a surplus if we keep things the way they are. I will stand firmly against tax increases that would jeopardize our progress and potentially throw us back into an economic tailspin.
Let’s focus on building stability in our economy and making Minnesota a better place to do business so that more jobs can be provided.
Sincerely,
State Rep. Mark Anderson