Posted: 01/31/13 01:08, Edited: 01/31/13 06:17
by Dave Mindeman
Minority Leader Senator David Hann has analyzed Governor Dayton's proposal. He gives us his opinion in a Duluth newspaper opinion piece:Politician's view: Dayton?s new taxes will be on Minnesota families
The title is very correct...this is a Politician's view. Outside of that, it is pretty much a total distortion.
The first sentence is already untrue....Every family in Minnesota would see a tax increase under Gov. Mark Dayton?s new budget proposal, which was released last week in St. Paul.
Not true. Some families will pay less tax. Hann forgets that the overall rate of the sales tax goes DOWN to 5.5%....and homeowners get a $500 property tax credit.
Continue Senator Hann....Under Dayton?s sales tax plan, the state would collect an additional $2.1 billion from new taxes on a variety of goods and services that would be paid by all Minnesotans.
Again, not true. Hann is extrapolating as if the entire increase in taxes will be paid by just Minnesotans. In reality, visitors to the Mall of America will pay some....border state shoppers will pay some....taxes on business to business transactions will be paid by corporations (although they are people too, I guess). And, granted some of these will be passed on to consumers, but certainly not all of it.
Hann continues his harangue....You may have heard that Gov. Dayton proposes to add sales taxes to oil changes and other car services, haircuts, digital books and music (digital downloads) and over-the-counter medications. Under Dayton?s plan, clothing items over $100 ? like work boots, snowsuits, and wedding dresses ? also would be taxed.
Now this IS true....along with the other services he lists as he goes along.
But Hann refuses to recognize that our economy is declining in its goods orientation. Dayton is talking about a real world service economy, not Hann's back to the future ideas.
Let's hear more...The state of Minnesota, under Dayton?s plan, would collect an average of $389 more in sales taxes from every Minnesotan to invest in more government-run programs we simply do not need. This means a family of four would pay $1,556 more per year.
Again, Hann distorts the truth. He takes a total and divides it by the population and then says we are all doomed. Ignoring the fact that higher income people will be paying more of the tax (as intended) and that out of state shoppers will pay a portion, and businesses will pay an additional portion. The fact remains that a large portion of Minnesotans will pay the same or less in taxes under Dayton's plan.
Hann shows definitively why he doesn't get any of this....There are no new reforms or initiatives in the details of the governor?s spending proposal to justify the increases. It is simply the same old increases to the same old programs being conducted in the same old ways. Minnesotans will enjoy the same government services as before ? just at a higher price.
So,Hann totally ignores WHY Dayton is proposing this. To help Senator Hann out, let's give him the reasons.1. To promote property tax relief which Hann's party has burdened homeowners with for a decade.
2. To end the constant run of budget deficits with stable real economy taxes.
3. To make the income tax system fairer to the middle class.
4. To lower corporate taxes on business and give them property tax relief as well.
5. And most important, increase our investment in education. An investment in the future that makes for a better workforce and the benefits that this gives to the Minnesota business community
Hann concludes with the continuing GOP untruth...Republicans oppose raising taxes on families to balance our budget. Two years ago we solved a $6 billion deficit by slowing the growth of government and by spending without eliminating essential services that Minnesotans need.
Truth: They balanced the budget with gimmicks and one time money that Dayton has had to account for in this budget. They tripled our debt service with tobacco bonding. They cut health and human service programs and forced education districts to borrow money to pay their expenses.
Yes, Senator Hann most certainly gave us a "politician's" view of the Dayton budget.
Too bad it was not an honest assessment as well.