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Raising taxes hurts job creation

GUEST COLUMN

Posted: February 24, 2011 - 8:19pm

Minnesota is grappling with severe unemployment, and an unconscionable budget deficit. As I campaigned to be your senator, I made a commitment to growing jobs in Minnesota and reducing government spending. 

The best way to get Minnesota’s economy on the path to prosperity is by growing jobs in the private sector. Raising taxes only prevents job creation.  That’s why it’s so imperative that my colleagues in the Legislature and I produce a budget that lives within our means.

We believe that Minnesota has a serious spending problem and the answer to solving the budget deficit is not to raise taxes on working families and job providers, but to help create a business friendly environment that will stimulate the creation of private sector jobs. Our first month in office, we introduced a jobs bill that would reduce the tax burden on job providers and entrepreneurs. We also voted to pass an early action budget bill that took the first step towards closing the budget deficit by one billion dollars.

Unfortunately, Gov. Mark Dayton disagreed with us and vetoed our phase one budget plan.Then last week, he proposed a budget plan that would give Minnesota the highest tax rate in the nation and increase spending. Even DFL Minority Leader, Tom Bakk called Gov. Dayton’s plan, “unrealistic.”

Right now, we have enough money in St. Paul. The $32 billion in projected revenue with taxes at their current level is already a 5 percent increase in spending. And yet, Gov. Dayton’s plan calls for more than 22 percent increase in spending.

The negative impact of Gov. Dayton’s plan is amplified by the fact that neighboring states as well as the majority of states across the U.S. are taking measures to reduce spending and cut taxes. States like Wisconsin have been taking steps to attract job creators by lowering taxes. Democrat governors, including Andrew Cuomo in New York, are proposing common sense budgets that do not include higher taxes. Gov. Dayton is making Minnesota an island of higher taxes, putting Minnesota businesses and job creators at a fundamental disadvantage.  

The reforms and reductions proposed by Republicans were just a first step to make sure we balance the budget without increasing the burden on hardworking Minnesotans. I intend to continue to work hard to achieve this realistic and achievable goal.  

My colleagues and I are eager to engage in a productive discussion with Gov. Dayton to find common ground, and produce a budget that will grow a healthy economy in the state. However, his tax and spend budget plan does not go far toward achieving that end goal. Economic growth is a bipartisan issue, and we hope Gov. Dayton will work with us to make Minnesota great once again.

SEN. PAUL GAZELKA is a rural Brainerd Republican serving his first term in the state Senate. He previously served one term in the state House.

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fishhead
5344
Points
fishhead 02/24/11 - 10:06 pm
0
0

Where are the jobs that Bush

Where are the jobs that Bush promised when he cut taxes on the wealthy? Where?

95% of ALL jobs are created by small businesses with less than 10 employees. Nearly all of them earn less than $250,000.

Also, one way of reducing taxes is to invest in the business or hire more people.

If taxes aren't raised on the wealthy they will be raised on the working class. They may be hidden in property taxes but they will be raised.

JohnBrown
55
Points
JohnBrown 02/24/11 - 10:55 pm
0
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3.1%

The Governor's proposed tax increase is 3.1% on taxable income between $130k and $500k then 6.1% thereafter.

If tax policy is the sole reason, or even a dominant factor, in deciding to hire or fire employees you are looking at losing the $50,000 an employee costs after your 1,001,640th dollar of taxable income.

I think it would be prudent to make hiring and firing decisions based on the demand of your widget. If the demand is netting the owner in excess of one million dollars and an additional employee is needed to keep production up, an additional employee will be hired.

Republicans refuse to use logic in their anti-tax messages. They think private companies operate like the government. Newsflash: They don't; they strive to offer good products at a low cost. It's pretty much the antithesis of government.

fishhead
5344
Points
fishhead 02/25/11 - 07:47 am
0
0

Why does Gazelka want to raise property taxes AGAIN!

I heard somewhere the MN businesses actually pay more in property taxes than they do in income taxes. You can hide income by investing in your company by hiring workers but if you invest in your house your property taxes go up.

While our part time Governor Pawlenty was out trying to build an image of an anti-tax crusader for the 2012 election my property taxes went up 150% and are scheduled to go up another 16% this year.

wolfg1
601
Points
wolfg1 02/25/11 - 08:01 am
0
0

What was the average

What was the average unemployment rate under Bush, Fish.

Check it out.

Might want to look at the average gas price, and the stock market as well.

Things didn't go to hell in a handbasket until the Dems took control of congress.

Vincent
14
Points
Vincent 02/25/11 - 08:47 am
0
0

Why does Gazelka want to raise property taxes AGAIN?

Fish, I’ve a great idea for the MN Democratic Senators opposed to any bills they disagree with.
Whenever any Senators the likes of Gazelka propose a bill to do as you suggest, they can all head east and cross the St. Croix River.

Jeff

wolfg1
601
Points
wolfg1 02/25/11 - 09:19 am
0
0

"You can hide income by

"You can hide income by investing in your company by hiring workers"

Yes Fish...It's just horrible when businesses do that.

Hayseed
261
Points
Hayseed 02/25/11 - 09:57 am
0
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Fraud

It would be nice if some of the social workers (state and county) would do more than rubber stamp assistance applications. The amount of fraud that goes on in CWC is insane. Investigating some of these people that collect govt. checks would create jobs and also to some extent eliminate welfare fraud (is it called welfare anymore or does that term hurt peoples feelings). The only real downside is that it would create govt. jobs.

dutchman7
7760
Points
dutchman7 02/25/11 - 10:02 am
0
0

Taxes were raised in the Pawlenty years: Property Tax Owners

Mr. Pawlenty keeps saying that taxes weren't raised on his watch from 1992 to 2010.

Yes they were, on the property tax owners.
I happen to be one of them.

They went up 4 fold during his watch.

Property tax owners are in the minority in the State of Minnesota and what a great way to finance a hidden
tax increase!

wolfg1
601
Points
wolfg1 02/25/11 - 10:11 am
0
0

"is it called welfare anymore

"is it called welfare anymore or does that term hurt peoples feelings"

It's now called "Democratic Voter Assistance"

hannahtotheright
81
Points
hannahtotheright 02/25/11 - 03:58 pm
0
0

Taxes

What a joke - Gazelka acts as though he has the middle class in mind, when in reality, Governor Dayton's tax increases would only affect the top 5% of Minnesotans. Property taxes hurt middle income families, seniors, lower income renters and small businesses far more than income taxes do. How exactly does putting small businesses out create jobs?

Furthermore, Mr. Gazelka doesn't mention the fact that the Republicans refused to designate where they'd like to cut spending - this would instead be delegated to an appointed official, as in, someone who wasn't put in place for the people by the people, and someone who conveniently won't have to answer uncomfortable questions like "Why has my child's classroom size doubled since you've been in office?" or "Why do our roads look like ... THAT?!" while running for re-election.

Finally, if we already have enough money in St. Paul (HA!), why do we need to raise taxes or cut spending? We're fine!

moonhawk
37
Points
moonhawk 02/25/11 - 11:34 am
0
0

property taxes

t-paw did not raise property taxes,our great local leaders did! the last increase was wards folly-15% for 13 years for teacher retirement! pequot just voted to raise property taxes! brainerd 181 is talking a new referendum this fall! they all add up-at least the county has held taxes level for their share! amen on a annual welfare review & the staff in already on the payroll!

moonhawk
37
Points
moonhawk 02/25/11 - 11:36 am
0
0

ps:

you are also paying for the big white elephants downtown($@90 million with interest-we voted on it) and the magnificant forestview school for the next 25 years-all that is your local property taxes!!

Analytical Perspective
0
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Analytical Perspective 02/25/11 - 01:41 pm
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Analytical Perspective

Moonhawk, well said. Fish, I've never commented on posts you've made in the past but have read them and am accutely aware that you are an emotional person, with emotional rationalizations. You remind me of the obscure, anonymous facebook bloggers (I recognize that I'm being anonymous as well, but aren't we all?) who like to post articles ranging from new world order, anti-Israel, anti-Muslim, birthers, truthers, unions, etc. who do so in an attempt to scare those who haven't already hidden their posts. Those from all sides of the political spectrum do this. It's easy to get caught up in that emotional trap.

My attempts here are simply to be informative, and Fish, I must inform you, you are wrong. I don't understand why you accuse Gazelka of wanting to raise property taxes. Look on the Senate website sometime. The bills that relate to property taxes that he has authored (only 1, Senate File 244) extend the amount of time that a city under population 20,000 would be required to pay property taxes on vacant lots, ie if a city owns a piece of property that isn't being used and therefore isn't generating revenue, and the city, because of the recession, is already cash strapped, the amount of time they would be required to pay property taxes is extended. This helps to ease their budget constraints and redirect monies that would have been paid in property taxes.

However, his 12A House member has authored a bill (House File 156, A bill for an act relating to school district referendum market value tax base alteration), having read public Minnesota legislative analysis personally it is understood that in theory this bill requires seasonal property owners to pay property taxes...great concept. But in diving further into the bill what it will do is shift the increase in property taxes onto local businesses. This isn't theory. This is analysis open to the public and is common knowledge for anyone who has dived below the surface of this issue, which a chief-author of a bill should be expected to do. So, my question is, why would Ward want to increase property taxes on local businesses? It should be noted, he is hard-core DFL, as is the chief-author in the Senate, Tom Bakk. (I'm not pointing a partisan finger, but that is noteworthy).

I wouldn't say that I am Republican, or Democrat, not even Independent, at least, I wouldn't say it openly. But holding our leaders accountable is a civic duty. Fish, you don't hold them accountable you read an article and form in your vast knowledge of experience or, insight which is obviously very limited and you spread false truths.

You can argue that point if you like. I don't care. I truly don't. What's posted here is vetted analysis from public documentary research, which does not include a CBS, ABC, FOX, Strib, Pioneer Press, or any other AP or non-AP related source. It's not skewed. I know this to be fact, detached from emotion.

And @hannahtotheright. Your post is confusing to me. You're aware that the Senate majority has changed for the first time in 38 years, correct? I wouldn't be surprised if the now minority party didn't share with their opposition how to do the job of governing, nor should they be expected to. That's politics. Put yourself in the position of being in the minority, with 21senators in your caucus, and 46 in the majority, for your entire career where, I've been told the DFL majority rarely, if ever, heard bills authored by GOP legislators (this is also public knowledge), and suddenly, you have 37 members in your new majority caucus and 30 members in the minority. Why do you claim you understand what is happening in St. Paul when you clearly do not? If anything, I'd say the GOP is going out of their way to make it fair for the DFL to have their voice heard. They don't have to, but they do. This is also noteworthy.

Maybe, Hannah, you're not quite ready yet to assume you know the innermost goings on in the Minnesota Legislature. I've studied our state leaders thoroughly, for several years, and STILL, I would not make that claim.

What makes you say "We're fine," anyway? Do you not know that the DFL party promised $38 billion in expenditures for this biennium while as of February 2011 we have only $32 billion of actual cash to spend? This isn't partisan either, this is fact. Look it up for yourselves.

I'll end with this. I challenge anyone reading to get a copy of the state's budget, read it and see where we spend our money.

Then, try, if you can, to wrap your mind around the concept of $38 billion. Here's a rule of measurement for you:

If you stacked $1 million worth of $1 thousand dollar bills it would be 18 inches high.

If you stacked $1 billion worth of $1 thousand dollar bills, it would be 100 feet higher than the Washington Monument.

We have 32 of these actual piles, and we need, over the next two years, 38. Why?

hannahtotheright
81
Points
hannahtotheright 02/25/11 - 04:14 pm
0
0

Analytical-

I'm not sure I understand your post either. What about mine makes you assume I didn't know about the Senate majority change?

I know sarcasm doesn't read well in print, but I would assume the use of "HA!" after Gazelka's assertion that "we have enough money in St. Paul" would imply such. Clearly, we're not! Pawlenty left the state with a $6 billion deficit! As far as I could tell, this was a discussion as to how to get it back on track.

Analytical Perspective
0
Points
Analytical Perspective 02/25/11 - 04:29 pm
0
0

Incorrect Info...

@Hannah. The responsibility of a balanced state budget falls on the legislative body. Not the executive branch, which is the Office of the Governor. The legislature knew when they sent their budget to the Gov that the state would have a deficit. The Gov knew that there would be a deficit. But no one knew what the exact damage would be. I can tell you, I witnessed Governor Pawlenty opening his doors to the DFL Senate for several months before session began, and before it ended. They didn't take him up on his offer until nearly the end of session.

Put simply. It is the responsiblity of the legislative body to present the Governor with a balanced budget. They did not do this until very late in the session when they knew they could play political games in an election year, back when it was assumed by everyone that the GOP Senate would never take the majority.

The DFL presented a $32 billion dollar budget that Gov Pawlenty signed off on. The DFL assumed they could simply raise taxes in 2011 since they arrogantly took for granted that they would retain control of both bodies. The DFL knew the deficit would be massive, and yet they overpromised $6 billion in new expenditures.

Another interesting notion is this: If MN has a budget of $32 billion, and we're supposed to spend $38 billion, and we will ONLY spend $32 billion, does that keep us living within our means? Or is the GOP really going to cut so drastically as popular notion says? Would it be possible to conceive that they're just not going to spend any new money without saying (falsely) that they're cutting so many essential services?

No. Logically speaking: They are not promising new money, that doesn't mean they're going to cut everything under the state budget purview. Be careful of the play on words that media like to use.

fishhead
5344
Points
fishhead 02/25/11 - 10:18 pm
0
0

ap

If the Republican party is successful in preventing Governor Dayton from increasing the tax rate on the wealthy to put them on par with the working class that money will come from other sources. One will be our property taxes.

Pawlenty did that because he knew he could avoid leaving his fingerprints at the scene of the crime.

I believe senator Gazelka will vote party line and if your party is successful in protecting the wealthy our property taxes WILL go up as a result.

Vincent
14
Points
Vincent 02/25/11 - 10:34 pm
0
0

Fish, give me your

Fish, give me your correlation between not increasing the tax rate on the wealthy to property taxes increasing.
As long as you concede property taxes are set at the local level that is.

Thanks, Jeff

nathanberg
0
Points
nathanberg 02/25/11 - 10:43 pm
0
0

its simple

Unpublished

more money in private sector, more money for private sector jobs, more taxes for public sector jobs, entitlement programs etc

actually think about this, and do not debate how private sector needs public sector, but how long does public sector jobs and entitlements last without private sector tax dollars?

You welfare recipients, police force, school teachers, fire fighters, etc better be thankful this recession isnt worse or you would have to take a far bigger cut. However, now that the world is allowing 2% of the oil output being shut off causing a 20% increase on the prices, I have a feeling you will find out that.

Prediction, here comes WWIII and the greatest depression.

fishhead
5344
Points
fishhead 02/25/11 - 11:14 pm
0
0

By not increasing the taxes

By not increasing the taxes on the wealthy more LGA will be cut from the budget forcing local government to raise our property taxes AGAIN.

Analytical Perspective
0
Points
Analytical Perspective 02/25/11 - 11:32 pm
0
0

Sorry...

But Fish, again, you're wrong. Go back to the 32 stacks of a billion dollars, we only need 32. The former majority promised 38. Minnesota literally, virtually, cannot deliver 38. Do you understand that? Put it in stacks of M&Ms if you have to, or whatever. We literally, cannot afford to continue being the nanny state. The bottle has been sucked dry.

How many metaphors do you need?

Bottom line: Taxes don't need to be raised on the middle class, or on the rich.

Just leave it at that.

Vincent
14
Points
Vincent 02/26/11 - 02:10 am
0
0

Fish, not true.

Specifically in Brainerd, we were cut approximately $250,000 per year in LGA on averaged since 2008.
Brainerd’s services haven’t been decreased one iota and property taxes have been maintained with a flat tax rate resulting in a negligible increase.
Brainerd has however cut wasteful spending by cutting back on non-essential employees to the tune of around 18 positions…most by attrition.
If Brainerd can operate at the same service level with 18 fewer employees, would you agree or disagree that we’re doing more with less and that it is highly likely other cities could probably do the same?

Also, based on what I’ve provided, do you think the question of (“what the hell have we been doing?”) is warranted?

Regards, Jeff

smartguy
1209
Points
smartguy 02/26/11 - 09:32 am
0
0

What was the averageBy

What was the average
By wolfg1 | 02/25/11 - 07:01 am
"What was the average unemployment rate under Bush, Fish."

According to the Bureau of Labor Stats, it was at 7.8% when he left office. While a bit lower than today, the economy was still wheeling downward and it had jumped by almost 3% from the previous year

Might want to look at the average gas price, and the stock market as well.

The summer of 2008 had average gas prices of over $4 per gallon. http://gasbuddy.com/gb_retail_price_chart.aspx

"As for the stock market, I suggest looking at how much the Dow dropped in the fall of 2008, and then look at its recovery. " http://stockcharts.com/charts/historical/djia2000.html

Is Bush the reason for the decline - not exclusively. I would refrain from blaming a president for the stock market's performance, or at least giving him/her the majority of the blame or praise.

"Things didn't go to hell in a handbasket until the Dems took control of congress."

You are right. Its all the Democrats fault. Wow.

fishhead
5344
Points
fishhead 02/26/11 - 09:34 am
0
0

Crow Wing County consists of

Crow Wing County consists of more than just Brainerd.

My property taxes went up 150% in the past three years and are going up another 16% this year.

When LGA is reduced property taxes go up to compensate. The money has to come from somewhere because the need doesn't disappear.

Yes the county wastes a lot of money but they will do that even when LGA is cut. To make up for a reduction in LGA they raise taxes.

They've already wasted over $118,000 on the fading ATV fad and are continuing to spend money on it. Pet projects of certain commissioners (Theide and Franzen) don't die regardless of public sentiment.

Vincent
14
Points
Vincent 02/26/11 - 10:27 am
0
0

Fish?

Would you agree or disagree that we’re doing more with less and that it is highly likely other cities (and I'll include CWC this time) could probably do the same?

Thanks, Jeff
P.S: Try to answer my final question in my previous post too.

wolfg1
601
Points
wolfg1 02/26/11 - 10:34 am
0
0

Thanks Smartguy. A typical

Thanks Smartguy. A typical liberal, don't answer the question, answer. What were the averages during his time in office? Not just the select time periods you chose.

fishhead
5344
Points
fishhead 02/26/11 - 11:04 am
0
0

I don't know if we are doing

I don't know if we are doing more with less or not or if we are just doing less. Probably a combination.

If you are asking if the county continues to waste money then I would say YES. Will that ever stop? NO. It's the nature of the beast to have a certain amount of waste and before all waste can be purged some essential services would be also cut in the process.

Trying to cut 100% of waste without cutting essential services too is like trying to build a perpetual motion machine. Not possible.

Even private industry has waste and sometimes lots of it. I've worked a lot of jobs and every one had a significant amount of waste.

IMO the best we can hope for is to minimize waste.

The illusion of lean mean government with no waste is a straw man argument invented to justify cuts based on ideology not reality.

wolfg1
601
Points
wolfg1 02/26/11 - 11:17 am
0
0

"IMO the best we can hope for

"IMO the best we can hope for is to minimize waste."

I agree with you on that, Fish.

Vincent
14
Points
Vincent 02/26/11 - 11:18 am
0
0

Fish, I know you know this but,

you’re blaming Gazelka for proposing bills that would essentially lower LGA directly increasing property taxes.
This is probably accurate, unless you consider the elected officials on the local level (County/City) that choose to increase property taxes instead of making serious efforts in cutting non-essential employee (wasteful) spending.
Blame your local elected officials and hold them accountable for not doing their jobs in your best interest and you’ll have better success in achieving your goal of lowering your property taxes.

Stay thirsty my friend,

Jeff (gulp)

fishhead
5344
Points
fishhead 02/26/11 - 11:29 am
0
0

There's wishful thinking and

There's wishful thinking and there's reality. The last election Theide ran unopposed despite his poor financial decisions. My commissioner will probably run unopposed the next time too.

Reality is that if the Republicans reduce LGA instead of raising taxes to par on the wealthy our property taxes WILL go up.

We'll see how further cuts to LGA play out. I hope it doesn't mean more icy roads like this winter. Conditions prevented the plows from scraping the ice off the roads for long periods but I did see days when Brainerd streets could have been scraped clean and they weren't so I wouldn't be too sure that LGA cuts haven't affected Brainerd services.

jackpo
0
Points
jackpo 02/26/11 - 11:28 am
0
0

Im sure glad I left Minnesota

Im sure glad I left Minnesota years ago.
I havent lost a thing by not being there.
Its the land of the fruitcakes.
Amen

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