Dear Neighbor,
We received word this week Gov. Mark Dayton cut a couple of proposals that were in his initial budget: a business-to-business sales tax and expanding taxes to include services like auto repairs and haircuts.
That is a start. The problem is, Dayton still did not address the fact his spending total is too high.
His revised budget still includes a spending increase of $2.7 billion over 2012-13. He would raise taxes by $1.8 billion to help pay for the added spending. We have a projected budget shortfall of $627 million in 2014-15, yet Dayton proposes raising taxes by approximately three times that much to support more government growth.
The taxes he retained in the new budget plan include: $1.1 billion on the top 2 percent of earners, $30 million on snowbirds, $317 million on cigarettes, and a metro transit sales tax plan (which may increase from .25 to .5).
Dayton's budget is issued as a set of recommendations. The majorities in our Legislature ultimately will author bills that will shape our new budget. We still are not sure how the budget package will look in the end. Democrats did not immediately take Dayton’s lead in scrapping tax increases.
To the contrary, a House committee recently heard a Democrat bill that would raise taxes on snack foods like chips and pretzels. This follows bills to raise taxes on alcohol (by 350 percent for some), cigarettes (by $1.60 cents per pack) and gasoline (10 cents per gallon). Also in the process is a new carpet tax, paint tax, and tax on regular batteries – such as non-rechargeable AA, AAA, C, D, and 9-volt – so they can build the bureaucracy at the MPCA to create new recycling programs for these items. I guess it doesn't matter that we already have successful recycling programs in place to take of these products? This bill is moving through the process now, and has cleared at least one committee in the House.
At this point, it appears there is nothing that Democrats won’t attempt to tax. Our House committees hear new bills that will raise taxes on hard-working, middle class Minnesotans seemingly every day.
State revenue is on the rise and we could balance our budget by simply staying within the limits of projected growth. Instead, it appears we are on a path toward raising taxes just so we can spend taxpayer money faster than it is received.
It just proves the appetite some people have for spending taxpayer dollars will never be satisfied.
Sincerely,
Tom Hackbarth
State Representative
309 State Office Building
100 Rev. Dr. Martin Luther King, Jr. Blvd.