Category: Pat Garofalo

by Dave Mindeman

Rep. Pat Garofalo was on Almanac again. This time he was there to argue against the minimum wage.

But he couldn't resist a dig at Democratic budget policy...

A lot of bad ideas moving forward that increase costs on business. Obamacare is being implemented; we see a higher sales tax being revived by the Senate this year...on things like hair cuts and spa services; we see extra burdens of the income tax on small business. You can't look at just one thing in the silo(?) -- all these things are adding up and you can't just simply-- you can't just tax the snot -- you can't just punish the snot out of small businesses and not expect there to be some sort of negative effect on either prices to the consumer or on reduced employment.

Yes, people, the Democrats are taxing the "snot" out of small business.

Rep. Garofalo seems to have interesting tax measurements. Taxing the "snot" out of business is apparently on the higher end of the scale.

But Garofalo was there to talk about the minimum wage and of course, he is against it. And he wants to know "who is going to pay for these costs?" Outside of the obvious which would be business would need to actually give their minimum wage employees a raise for the first time in years, Garofalo had a different idea.

Adjust the Minnesota Working Family Tax Credit. And as Rep. Winkler pointed out during the discussion, this is certainly a part of it - but this tax credit is just another give away to business. Instead of paying their employees an "almost" livable wage, they get the government to supplement these low wage jobs.

So, Rep. Garofalo answers his own question. Who pays? The Minnesota taxpayer. Business gets to keep paying wages that don't even come to subsistence level and we, as taxpayers, supplement the income.

Thanks for the heads up, Rep. Garofalo. And by the way, I don't think "snot" has much to do with it.

Category: Pat Garofalo

by Dave Mindeman

Republicans like to criticize without context when it comes to taxes.

For instance, Rep. Pat Garofalo puts out a monthly newsletter and one of his recent paragraphs went like this:

2% PAYROLL TAX HURTING THE ECONOMY

At the beginning of the year, every person who is working experienced a 2% reduction in take home pay as a result of the federal government increasing the social security tax from 4.2 to 6.2%. Contrary to some news reports, this tax increase impacts more than just "the rich". A family making $50,000 a year experienced a $1,000 increase in their taxes. Unfortunately, this is already having negative effects on the economy as savings and consumer spending rates both decline.

Garofalo leaves out some important context.

The Social Security payroll tax cut was negotiated with Republicans in 2010 as part of the Bush Tax Cut extensions, and as a means of economic stimulus. And in that regard, it was successful. However, it was never meant to be permanent. Originally it was supposed to be a 1 year event; but it was extended into 2012.

Another point that Garofalo leaves out is that in order to pay for this payroll tax cut, which is how Social Security is funded, the government borrowed $112 billion for that first year (and at least another $112 billion for 2012) to keep Social Security funds on track.

If we had continued that 2% reduction, as Rep. Garofalo insinuates that we should have, all we would be doing is adding more to the national debt. Which Rep. Garofalo contends will destroy this country.

So which is more important? Tax cuts or debt reduction?

Maybe Rep. Garofalo will explain that in his next newsletter.

Category: Pat Garofalo

by Dave Mindeman

He's at it again.

The House Chair of the Education Committee, Pat Garofalo, won't fully fund education. He goes along with the IOU's that his party dumped on education via the budget. He yaks about the "waste" in education dollars. But now he's attempting something new.

He wants to steal money for education.

State Rep. Pat Garafalo, R-Farmington, is championing a proposal to redirect 40 percent of money now supporting Legacy arts and culture to public and private school children.

Garofalo wants to heist money from the Legacy funds. He wants 40% of it to be dedicated to education.

Whether or not you agree that the Legacy Amendment was meant to be a Constitutional change, it is what it is. And its legality is now a Constitutional one.

Garofalo has no legitimate right to steal Legacy money to fix his budget screw ups. That money is not some kind of slush fund for the legislature to play with when it brings about its own shortfalls.

There is a simple solution to all of this. Fund education fully. Take up the Winkler bill, close the loopholes...pay back the schools.

You don't have to steal it.