In his first public appearance since back surgery in late December, Governor Mark “The Taxman” Dayton today made good on his 2010 campaign promise (and broke a few others) to raise taxes on the rich. And by “the rich” apparently he means everyone in the state.
The plan is to raise $3.6 billion in new tax revenue, while cutting property taxes by $1.4 billion. Somehow this scheme will “not raise taxes on 98% of Minnesotans, while taxing all kids of things that everyday Minnesotans need and use, and netting a cool $2 billion in new revenue for the government. That is some interesting math, and this budget proposal proves that the DFL never met a tax they wouldn’t raise.
You Voted For This
Well, Minnesota, this is what you voted for, back in November, and the DFL folks are just laughing it up at your expense (literally). The good news is that by over-reaching this far, it is obvious that Mark Dayton isn’t interested in a second term as Governor. And unless the Dems in the legislature can rein this in, they aren’t interested in holding their majorities, either.
Dayton’s proposal “reduces” business property taxes $120 million through 2017 by “freezing” (maintaining the already high level of) the state business levy. The plan also offers to buy the loyalty of homeowners by tossing them a $500 rebate (no word on if you need to send in the UPC code and proof-of-purchase)
Don’t you love how not-increasing-a-tax is called a tax cut? Neat, huh?
The Governor’s plan creates a new 4th tier income tax bracket on the top 2% of wage-earners in Minnesota: 9.85% for Minnesotans with a taxable income of over $250,000 for married joint filers and $150,000 in taxable income for single filers – you know…”rich people.”
Sales Tax flip-flop
2013 Governor Dayton proposes a lowering of the sales tax rate to 5.5%, but expanding the sales tax to include clothing, ice skating lessons, newspaper & Magazine subscriptions, auto repairs, and daycare – apparently these are goods and services that only rich people need, right?
But in 2010, Candidate Dayton said, “Extending the sales tax to clothing…is regressive. Extending the sales tax to all consumer services…I mean, taxing all that and turning those service businesses as tax collectors for the state is really a hornet’s nest…it’s more of a regressive tax.”
Cigarette Tax flip-flop
2013 Governor Dayton proposes a new 94 cents-per-pack cigarette tax. But in 2010, Candidate Dayton said, “You raise the price of a pack of cigarettes…that’s money out of the pockets of working people and poorer people, and that means kids don’t have as much to eat or have the same quality of food.”
How Your $38 Billion Will be Spent
Because a Democrat can’t have more taxes without more spending, the 2014-15 budget includes $2 billion in new revenue and $1 billion in new spending. Here are the winners in the income-confiscation-and-redistribution lottery:
$240 million for higher education (including $80 million to “make college more affordable”). $125 million for special education. $158 million for K-12 education, and an additional $44 million in “scholarships” so that low-income children can attend higher-quality pre-school or daycare programs. Once again we make public education more expensive without making it more effective.
The plan promises $5.1 billion in cost-savings and budget reductions over 4 years, but includes both a wink and a nod, because we know that this will never happen.
You don’t have to take my word for it, you can see the entire budget package here (via MinnPost)
Let me tell you how it will be: There’s one for you, nineteen for me
Should five per cent appear too small, be thankful I don’t take it all
If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat.
If you get too cold I’ll tax the heat,
If you take a walk, I’ll tax your feet.
Don’t ask me what I want it for, if you don’t want to pay some more
Now my advice for those who die: Declare the pennies on your eyes
‘Cause I’m the taxman, yeah, I’m the taxman
And you’re working for no one but me.
– The Beatles, 1966