Brent E. Frazier, Published June 02 2011
Democrats’ spin can’t hide Dayton’s intent to raise taxesThe Minnesota 87th Legislative Session has most recently drawn to a close in St. Paul without a budget agreement. Democratic Gov. Mark Dayton now has the authority, and he will call a special session without a closing date.
So what have we learned thus far?
The Republican majority in the House of Representatives and Senate have agreed not to increase our taxes, whereas Dayton wants to increase the taxes of the high-income-bracket wage earners.
We always hear that when two parties can’t agree to a conclusion on a debated matter, compromise needs to then play a factor to reach this much-needed conclusion.
There has been talk in the past that the Republican-controlled House of Representatives and Senate have not stepped forward to compromise with the governor on the budget, but such a statement is a myth.
You must remember that the Minnesota House of Representatives and Senate Republicans began with a budget figure at $32 billion, but later increased the figure to $34 billion. The Republicans have compromised, but the governor believes that the state of Minnesota needs to spend more, as he is settled on a figure of $35.8 billion.
Minnesota does not have a revenue problem but a spending problem. The governor’s request would increase spending by a whopping 16 percent from the last budget. During these difficult economic times, how many of you homeowners plan to increase your budget by 16 percent?
We must understand that to increase the taxes on the higher-income-bracket wage earners is the same as increasing the taxes on the middle- and lower-income-bracket wage earners.
Many of the higher-income-bracket wage earners are business people who produce and manufacture products that are purchased by people of all incomes. To increase the taxes of higher-income-bracket wage earners can be compared to increasing the cost of raw materials for their products. When the cost of the raw materials rise, the manufacturer thus tries to capture this cost by increasing the sticker price of the product that is purchased by us, the consumers.
There also are several middle-income-bracket wage earners who manufacture products. If the taxes of the higher-income-bracket wage earners are increased, they are left with less money to purchase products from the middle-income-bracket wage earners, thus resulting in fewer sales and less earnings for the middle- income-bracket wage earners.
In conclusion, the governor wants to increase the taxes of all people in Minnesota. If you do not want your taxes to increase, please call the governor’s office at (651) 201-3400 and ask him to pass a budget without increasing your taxes.