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ST. PAUL – Governor Mark Dayton recently unveiled his plan to balance Minnesota’s budget. But State Representative Bob Gunther (R-Fairmont) said if Dayton’s goal is to create more jobs in Minnesota, then his budget proposal is a recipe for disaster.
“The Legislature is trying to erect a welcome sign at the Minnesota borders for potential job creators, but with this budget the governor apparently wants us to put up a stop sign,” Gunther said. “This proposal is disappointing to say the least.”
Under Dayton’s plan, he wants to increase taxes on Minnesotans by more than $4 billion. By contrast, he offered $485 million in net spending reductions. Included in that figure is a substantial cut to nursing homes, whose employees have gone years without raises.
Dayton’s bill also wildly increases state government spending at a time of fiscal uncertainly. In the face of a $6.2 billion budget deficit, Dayton wants to increase total spending from $32 billion this biennium to $37 billion for Fiscal Years 2012-13.
Gunther, who chairs the powerful Minnesota House Jobs and Economic Development Finance Committee, said his committee will hold hearings on the governor’s plan, but added that Dayton shouldn’t get his hopes up.
“We all know that if his proposal became law it would be the ultimate job killer,” Gunther said. “You can’t create the highest tax rate in the country and expect business owners to rush to Minnesota and expand.”
“Before long, the Minnesota House will produce a balanced budget that reduces government spending and does not raise taxes, because that is the fiscally responsible thing to do,” Gunther concluded.
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