Don't blame Medtronic, thank the DFL

Photo by Kalikkio, https://creativecommons.org/licenses/by-nc-sa/2.0/

In a one-sided story, “Medtronic deal could sting for long-time shareholders,” the Strib again plays the big, bad corporation against the innocent “little guy” — but the real villain (hero?) is left unnamed.

“The thing that bothers me the most is that this is a Minneapolis-based company that depended on the Minnesota investment community for its initial financing, that attracted investment from Minnesota investors first,” Cohen said. “The ones that were there in the beginning are the ones that are going to get screwed.”...

Howard Richards, a certified financial planner at Securus Wealth Management in Plymouth, offers a worst-case scenario: a taxpayer subject to the top federal capital gains rate of 20 percent, an Obama­care tax of 3.8 percent and Minnesota’s top marginal rate of 9.85 percent.

Medtronic shareholders, who will be required to sell all of their shares (some at large gains over the purchase price) when the Covidien deal closes, should be thanking Congressional Democrats, Governor Dayton, and state DFL lawmakers for Obamacare, bailouts, MNCare, light rail trains that unite Minneapolis and Saint Paul, a new Senate Legislative Office Building, statues, fountains, civic centers, stadiums, the arts, regulatory burdens, and the overall quality of life that taxes make possible.

If we didn't tax capital gains at these confiscatory rates, it would only encourage large and small investors alike to invest more in the private enterprises of their choice. That would leave less wealth for redistribution by federal, state, and regional agencies, for the greater good. Ditto for ever-higher taxes on corporate profits.

Besides that, how fair is it to those less fortunate when you risk your own money in a small startup like Medtronic, and the stock increases in value over time as the company provides innovative goods or services that people want? You shareholders didn't actually do anything to deserve your windfall. How could anything that you would buy with that “free money” possibly be better than increasing the size and scope of government?

Quit whining about your first-world problems, Medtronic shareholders: you're rich. You'll still have well over half of your obscene profit even after taxes. For the greater good, share the wealth. Medtronic should be proud to pay the highest corporate tax rate in the world. You should be asking to be taxed more, not less. You should be voting Democrat.

Republican majorities missed an opportunity

By Phil Krinkie

Regardless of how policy makers would like to characterize the session, there is a phrase that comes to mind by American author H. Jackson Brown, Jr.

“Nothing is more expensive than a missed opportunity.”

The 2012 legislative session was disappointing not only for what they did, but also for what they failed to do. For the first time in 38 years both the House and Senate were controlled by Republicans who ran on a promise to reduce the size of government and provide tax relief to hard working Minnesotans. In January Republicans gathered at the State Capitol to present an “aggressive” reform agenda which called for tax relief and government reform. Early in the session the budget forecast brought news of a billion dollar budget surplus. This should have cleared the way for swift progress and a speedy conclusion to the session, yet it took the conservative majority three months to send their first tax reform bill to Gov. Dayton.

Rather than working to enact the priorities that got them elected; Republican legislators let Gov. Dayton set the agenda and wasted time on meaningless hearings, meetings with Vikings owner Zygi Wilf, and approving a long list of public pork projects.

In the end GOP lawmakers failed to accomplish any of their major goals and succumbed to Gov. Dayton’s desire to increase the state’s debt and approve a taxpayer funded billion dollar sports palace.

Phil Krinkie is the President of the Taxpayers League of Minnesota.

Bread and circuses II

Business is a slave to profit, but politicians are slaves to politics. Why compete in a free market when, as StarTribune reporter Eric Weiffering says in his excellent analysis of public ownership of pro sports stadiums, businesses can "privatize their gains while socializing losses ("Go long to measure the true cost of a stadium," StarTribune, January 29, 2012). Pro sports teams and their cronies in the government are literally laughing all the way to the bank. In too many public-private "partnerships," the private owners get the profit, the politicians get the photo op, and the taxpayers get a perpetual liability.

No one has summed up the irresistible lure of bread and circuses better than this oft-misquoted yet cogent mash-up:

The release of initiative and enterprise made possible by self-government ultimately generates disintegrating forces from within. Again and again, after freedom brings opportunity and some degree of plenty, the competent become selfish, luxury-loving and complacent; the incompetent and unfortunate grow envious and covetous; and all three groups turn aside from the hard road of freedom to worship the golden calf of economic security. The historical cycle seems to be: from bondage to spiritual faith; from spiritual faith to courage; from courage to liberty; from liberty to abundance; from abundance to selfishness; from selfishness to apathy; from apathy to dependency; and from dependency back to bondage once more.^[1]

Today we as a society are somewhere between apathy and dependency. If the cycle of bondage can be prevented from descending from abundance, or brought back to abundance, the 2012 electorate needs to send representatives to the state legislatures, the Congress, and elect a President with the collective will to put aside bread and circuses, and let free enterprise work so the people can put bread back on their own tables.

1. "The Truth about Tytler," by Loren Collins, http://www.lorencollins.net/tytler.html, January 2009.

Miller Time

Bureaucracy and over-regulation are threatening Minnesotans' supply of Miller Lite, Blue Moon, and 37 other MillerCoors brands of beer. The headlines report that MillerCoors failed to renew their three-year brand license before the government shutdown, but deeper reporting reveals that the State of Minnesota simply failed to cash their check before Gov. Mark Dayton shut down state government. The fees involved for a three-year renewal total only $1170 ($30 per brand). In an epitome of bureaucratic irony, by forcing MillerCoors to pull its product from sale, the state of Minnesota cuts off its nose (liquor tax revenues) to spite its face.

This situation fits into an ongoing discussion by Bob Davis and Tom Emmer on their morning radio show. They have been questioning the very existence of licensing fees like this. Why does the state collect brand license fees at all? Minnesota law surrounding the labeling of alcoholic beverages seems to overlap or duplicate federal law. If such a product is legal to sell in the United States, shouldn't it be legal in the Minnesota? What is the benefit of Minnesota brand label registration to the consumer, really? Besides that, at $30 for three years, the state might even lose money on every license it sells.

Some permit and license requirements protect consumers and the public, but others appear to be solely administrative processes that give the state government a piece of the action in private business transactions while adding zero value. (Anyone remember the Stamp Act?) If you're wondering what business owners mean by "regulatory burden," it's when government makes it more difficult to make a buck, and in this case, even to render a tribute unto Caesar.

The 5% solution

A couple of years ago, my employer, Hewlett-Packard, cut everyone's salary 5% and stopped matching employee 401(k) contributions. Well, not everyone's salary was cut by an equal amount. Hourly worker wages were cut around 2% I believe, and management got a 10-15% cut. Nobody liked it, but our salaries were eventually restored this year (not retroactively), and we decided that a pay cut was better than a layoff. (Thousands of our co-workers were laid off.)

Governor Dayton and the Legislature are said to be about $1.6 billion apart between their budgets. That is less than 5% of the record $34 billion budget, much closer to Dayton's levels of funding than the GOP originally proposed and without the tax cuts and reforms that conservatives demanded in the last election. The State of Minnesota does not have a revenue problem, it has a spending problem. If new sources of revenue are found, new ways to spend the money will be found. Contrary to the fuzzy math of the unions and special interests, getting less of an increase than you asked for is not a "cut." Less of an increase is certainly better than a layoff, or a shutdown.

You can't always get what you want, and the Legislature has given the governor quite a lot of what he wanted. It's time for governor Dayton to sign the budget and get Minnesota, the only state in the union in government shutdown, back to work.

Why a shutdown?

Contrary to the impressions left by media reports and DFL statements, the GOP-controlled legislature sent several budget compromise proposals to Governor Dayton in an attempt to avoid a state government shutdown. Rep. Sarah Anderson (R-Plymouth) provided this summary in an e-mail to constituents:

May:  Knowing Governor Dayton wanted more revenue, Republicans proposed a balanced budget containing a 6 percent increase in state spending.  This proposal would have avoided a special session and a government shutdown.  STATUS:  Vetoed by Governor Dayton

June 6:  Republican leaders offered to accept 50 percent of Governor Dayton's budget.  This compromise proposal would have adopted the Governor's funding numbers for schools, courts, and public safety.  STATUS:  Rejected by Governor Dayton

June 16:  Republican leaders dropped request for tax cuts - a key provision for us.  This compromise proposal also included increasing spending for higher education, transportation, and more.  The compromise also renewed our offer to accept Governor Dayton's numbers for schools, courts, and public safety.  STATUS:  Rejected by Governor Dayton

June 30:  Republican leaders offered to add $10 million to the University of Minnesota and issue appropriation bonds.  Governor Dayton wanted to shift school aid payments from 70/30 to 50/50.  GOP leaders said no to Governor Dayton's 50/50 school aid payment shift, but did move a little on that split to generate $700 million in revenue for the Governor.  Republican leaders then offered to increase per student aid to cover borrowing costs.  STATUS:  Rejected by Governor Dayton

Republicans have passed the largest budget in state history without raising taxes, without the tax cuts that conservatives have demanded, with funding for many of the governor's priorities, and even giving a little toward the governor's 50/50 shift proposal, which would tighten the financial screws on school districts once again (especially charter schools). Governor Dayton, the CEO of Minnesota's divided government, should put his "tax the rich" mantra on hold for his reelection, and reopen the state for business.

UPDATE: Senate Majority Leader Amy Koch (R-Buffalo) stated on the July 5 edition of Capitol Report (Senate Media Services) that the Governor's last budget proposal is still $1.6 billion higher than the Republicans' last proposal, itself the highest general fund budget in state history. She also pointed out that despite many divided state governments nationwide (different parties controlling the legislature and the governor's office), Minnesota was the only state in the union that shut down its government this year.

Grogan speaks out for jobs, business

HD43B candidate Brian Grogan sat down with podcaster and blogger Walter Hudson for a wide-ranging interview that touched on Minnesota's jobs and business climate, tax and spending policy, and local government accountability.

You can listen to the entire interview here, or on the Podomatic web site.

John Benson's tax-heavy voting record

In a previous blog post, I summarized the votes that make up Sen. Terri Bonoff's (DFL-Minnetonka) poor career rating on the Taxpayers League of Minnesota's legislative scorecards. In this post, I'll show why Rep. John Benson's (DFL-Minnetonka) career score is even lower than Bonoff's.

2007: Benson repeatedly voted in favor of what the Taxpayers League called a "bloated" transportation bill, then voted to override Gov. Pawlenty's veto of the bill, which would have raised taxes by billions of dollars, by up to $500 a year for a family of four. Benson also voted in favor of the Health and Human Services Finance bill, which would have reversed many welfare reforms and increased welfare spending in Minnesota (the bill was vetoed by Gov. Pawlenty). Rating: 25.

2008: Benson earned a big zero in this year, for voting contrary to Taxpayers League positions on every one of its tracked votes, including amending the state constitution to dedicate revenue from a new sales tax to fund "natural resource protection and cultural heritage programs;" levying an additional $6.6 billion in taxes on transportation and creating a new Twin Cities metro bureaucracy (vetoed by Gov. Pawlenty, veto overridden), and a $1 billion bonding bill with according to the Taxpayers League, "hundreds of millions for local arenas, hockey rinks, parks and trails and the Central Corridor lightrail boondoggle… with no money for state priorities like road and bridge construction." Rating: 0.

2009: Benson voted in favor of the $4.3 billion transportation bill that included funding for various light rail and commuter rail projects, continuing the trend for rail funding over highways; loan forgiveness for the city of St. Paul RiverCentre Arena totaling $32.75 million (vetoed by Gov. Pawlenty); and a $1 billion tax increase including the fourth tier tax increase, liquor tax increases, and cigarette tax (vetoed by Gov. Pawlenty; Benson voted to override the veto, which did not pass). Benson also voted in favor of the last-hour, end-of-session third attempt by the DFL leadership to pass a billion dollar tax increase. Rating: 7.

2010: At least Benson's score didn't go down this year, but in 2010 and 2009 he missed another zero score by only one vote. He voted against lowering the corporate tax rate (Minnesota has the third highest corporate income tax rate in the world!), in favor of adding a new fourth tier to the income tax, and voted to raise food, beverage, and lodging taxes for select cities as well as to authorize $34 million in additional debt for the Metropolitan Council. Rating: 7.

With another budget deficit looming, Minnesotans can ill-afford even more job-killing tax and spending increases. For more on John Benson's tax-and-spend voting record, and how you can help to restore fiscal sanity in the Minnesota Legislature, please visit the Brian Grogan for House web site (Twitter: @bwgrogan).

Tip credit would boost employment

By Brian Grogan

Recently, Republican candidate for Governor Tom Emmer spoke of the need for a law to relieve restaurant owners from paying the full minimum wage to employees who earn tips. Unfortunately, this debate has been misstated and it is hurting the many small-business restaurant owners who employ over 100,000 Minnesotans. The debate is not about minimum wage for servers but about government regulation and its unintended consequences on small businesses and jobs development.

The mainstream media has been delinquent in reporting the full story. Prior to this story breaking, I had discussions with the Minnesota Restaurant Association and with real estate developers who specialize in developing restaurant properties. Both groups have expressed the frustration they have with a law in Minnesota that forces small business, restaurant owners to pay an additional 15-20 percent in fixed overhead costs.

In particular, if a restaurant generates $1.5 million in revenues, an additional $200,000 to $300,000 in potential profits is spent paying wages to employees typically earning on average $13 or more per hour. Within a restaurant, a majority of the affected, higher paid employees are single, under 26 years old and do not have dependents. They are earning a great wage and a change to the law would not significantly change their annual wage compensation.

Regionally, this law and added business cost is unique to Minnesota. Wisconsin, Iowa, South Dakota, North Dakota, and 39 other states do not force the higher wage cost on restaurants. This is a classic example of how regulations in Minnesota are hurting local businesses.

One real estate developer commented that this law is directly related to the decision by a number of large, national restaurant franchises to cease opening new locations within the state of Minnesota. He estimates that this reflects a loss of as many as 15,000 new jobs in our state. And, this doesn’t account for the lost tax revenues and ancillary spending related to new construction and other wages.

In addition, this law is negatively affecting many small business restaurant owners who today, due to a slow economy, are close to shutting their doors. In response to the adverse effect of this law, the Restaurant Association approached the Minnesota Senate during the 2010 legislative session and asked for relief.

This is what the mainstream media is not telling you. Senator Kathy Saltzman, SD56, the Senate DFL majority whip, took up the cause for small business restaurant owners and authored the Restaurant Recovery Act. According to association leaders, it had fairly significant support within the senate and the likelihood of passage was looking good.

Unfortunately, according to the restaurant association, the unions found out about the bill and used their political clout to make sure the bill never made it to the Senate floor for a final vote. What is significant is that the unions do not have a foothold within the restaurant industry, so not a single union job or wage would have ever been affected by the law.

The DFL withdrew the bill. During the 2010 session, at a time of anemic jobs growth, Democrats were more concerned about pleasing the unions than passing legislation that would have spurred jobs growth and protected jobs.

Did waiters and waitresses support this bill? Yes! During the bill’s hearing in committee, a significant number of waiters and waitresses spoke out and were present to show their support to their employers and the bill. They understand the difficulty their employers are having meeting payroll in this slow economy.

This is a good debate because it is about government intervention within businesses and its unintended consequences, media biases, the union strangle hold on the DFL party and the loss of Minnesota jobs! If elected to the state House, I will introduce this legislation since I am more concerned about saving jobs and spurring jobs growth than pleasing union officials.

Brian Grogan, Minnetonka, is running for the Minnesota House of Representatives in House District 43B.

Is Congress listening to the people?

By Brian W. Grogan

Is Congress listening to the people? The British didn’t during the 1770s.

Under the Stamp Act (1765) and Townsend Act (1767), the British government attempted to impose taxes on the American colonies. The colonies refused to pay the levies claiming they had no obligation to pay taxes imposed by a government in which they had no representation.

In response to the colonies' position, the King and Parliament, rather than wisely granting representation, choose instead to enact a back room deal which eliminated the taxes but imposed a duty on tea (a hidden tax). By refusing to acknowledge the American people’s fundamental right to representation, the British government encouraged our country’s act of defiance (The Boston Tea Party) and the eventual war of independence that was first started and fought in Lexington, Massachusetts.

Ironically, there are similar feelings occurring today and again it is the citizens of Massachusetts sending the signal to our elected leaders in Washington, D.C. Will our leaders in Washington acknowledge our sentiment or will they act like Britain’s arrogant leaders of 1774?

Recent polls and the election results in Massachusetts clearly show people are upset with the failure of our elected leaders to represent the American people. We sense the elected elite craving power over us rather than serving us.

We are a nation of people who want elected officials of moral character and truthfulness and who will listen and serve the people. We want minimum government interference and the freedom to pursue endeavors that offer personal and financial rewards.

We believe our economic system is the best at rewarding hard work and the opportunity to succeed regardless of background, race, religion and education. We want a government that provides the framework to succeed by putting the strength of our nation with the people not the government.

Many Americans today do not believe our elected leaders stand for these fundamental rights. Thank you, citizens of the Commonwealth of Massachusetts, for once again sending a clear message to our elected leaders.

Are you listening, leaders?

Brian Grogan, Minnetonka, Minn., is running for the Minnesota House of Representatives in District 43B.

Where should some of the HHS cuts come from?

Part 3 of a 3-part series

By Brian W. Grogan

Where should some of the cuts come from?

First, we should be reducing welfare fraud by hiring auditors to eliminate the estimated $10 million in fraud already identified.

Secondly, we need to pay monthly welfare benefits that are in parity to neighboring states so as to reduce the incentive for non-residents to migrate to our state solely for better monthly benefits. We need to enact legislation that denies welfare benefit coverage to people who have lived less than 6 months in our State. We need to deny health care coverage to non-resident Minnesotans and illegal immigrants. In addition, MNCare (State of Minnesota’s Health Care assistance program) should not be available to parents who earn over $30,000.

We also need to understand that the health care system challenges in Minnesota are due predominately to our regulations and laws. Since the early 1990s, legislative leaders have been meticulously building a government-run health care system by passing laws that require private citizens (you and me) to buy more and more coverage benefits whether we want them or not (coverage mandates). In addition, our legislators have passed laws that effectively limit our access to health insurance providers (limit competition). Thirdly, our legislators have refused to pass tort reform.

Minnesota has more mandated coverage requirements (in 2008 there were 64 mandates) than any other state in the nation. For every one mandated coverage requirement, we pay an additional premium so it shouldn’t surprise us when we discover that Minnesota residents pay some of the highest health care insurance premiums in the nation. For example, a 25-year-old must pay for hearing aid coverage and a 55-year-old must purchase fertility drug coverage.

In addition, Minnesota lawmakers have erected barriers to entry of health insurance providers which means our choices are purposely restricted. We are essentially forced to purchase coverage from three companies who control nearly 90 percent of Minnesota’s market.

Do we have a health care crisis in our state? Minnesota has the highest number of insured people (93%) in the nation. We don’t have a health care crisis in our state. We have a health care insurance regulation problem. If we restrict health and human services (HHS) MinnesotaCare access to non-Minnesota residents and illegal immigrants as well as pass legislation to address mandates, tort reform and restricted competition, we could dramatically reduce the growth of HHS.

Brian Grogan, Minnetonka, was the Republican-endorsed candidate in state House District 43B in 2008.

Why are DFL leaders crying foul on HHS cuts?

Part 2 of a 3-part series

By Brian W. Grogan

Since 1960, Minnesota’s state budget (general fund) has grown by over 18% annually. The media, liberal commentators and DFL legislators are trying to tell Minnesota taxpayers that our $4.6 billion deficit is due to the economy, but this is only part of the story. The unsustainable growth of government spending is the real cause for the deficits we are facing. What is the response of the DFL Minnesota House and Senate leaders to this enormous deficit? For the last four months they have been trying to sell Minnesotans on our "shared responsibility," which means an increase in taxes. Let's understand their proposals.

The DFL-controlled Senate proposal raised taxes by $2.3 billion and cut spending by $2.3 billion, but the proposed spending cuts are based on a budget that is increasing by 4.8%. In other words, the DFL leaders in the Senate don't want to actually cut government spending but essentially hold the line at 0% budget growth while increasing our taxes.

The DFL-controlled House wants to raise taxes by $1 billion while cutting expenses by $3.6 billion, which is better than the Senate's approach but it still only cuts overall spending by 5% while raising our taxes. We are in a 12% deficit hole and half of the DFL leaders don't want to cut spending while the other half only want to cut spending by 5%. Gov. Pawlenty wants 12% in spending cuts to address the 12% deficit. Which approach between the three is the most fiscally responsible especially in light of the fact that MN government spending has grown by over 18% annually since 1960?

Do you know any fiscally-responsible person or family that would maintain or only slightly decrease their spending at a time when they have a 12% drop in income and have insufficient funds to pay future obligations? Most financially-responsible families and individuals would be analyzing the books to find out-of-control spending problems and where to make cuts.

There is a reason why Gov. Pawlenty is predominately cutting the Health and Human Services (HHS) budget. It is the most out-of-control piece of the budget and Minnesotans should be greatly concerned that the DFL party refuses to accept the fact that HHS growth is unsustainable. In fact, the only way we can support the DFL’s vision for HHS obligations would to raise personal income taxes to 20% or more.

Unfortunately, our media outlets and liberal commentators are not talking about the reality of the HHS problem. Under current eligibility standards and growth projections, the HHS obligation will grow to over $40 billion by 2025 which would represent 80 percent of the budget. How will our State be able to fund K-12 education in addition to our state college system, city government, law enforcement and prison system if our HHS obligation represents 80% of the budget?

The DFL majorities are screaming how Gov. Pawlenty is reducing benefits to the indigent and uninsurable. This is simply not true.

The 2010-11 budget had HHS growing by 26% ($2.4 billion increase) from its 2008-09 biennium budget. Gov. Pawlenty proposed a $1.7 billion cut from the $11.4 billion HHS 2010 budget which represents a 10% cut. But even after Pawlenty’s proposed cuts, the HHS budget grows by 10% over the 2008-09 biennium budget.

The DFL counterproposal is to cut $500 million in the 2010-11 biennium but then reinstate the cuts in 2012. The DFL is still committed to growing HHS's obligations at an unsustainable pace. Thankfully, Gov. Pawlenty is committed to slowing HHS's growth.

Unfortunately, our media sources are refusing to challenge DFL party leaders during these tough economic times. As a state, we need an honest debate on what we can and cannot provide to Minnesota's indigent population and uninsured residents. I feel strongly that tough decisions need to be made by our political leaders in order to serve our state's long-term interest.

Brian Grogan, Minnetonka, was the Republican-endorsed candidate in state House District 43B in 2008.

No shutdown, no special session, no new taxes

Governor Pawlenty, after inaction by the DFL Legislature to close the state's $6.4 billion budget deficit, which they are required to do by law, took bold action yesterday to declare that there will be no government shutdown, no special session, and no new taxes. The 2009 Legislative session will adjourn on Monday at midnight.

The DFL was caught flatfooted by the announcement. Speaker of the House Margaret Anderson Kelliher (DFL-Minneapolis) appeared visibly shaken during the DFL response to the governor's announcement. A special session was apparently a part of their strategy all along, otherwise why send bills with tax increases to the governor in spite of his promise to veto any and all tax increases?

With DFL majorities in the Senate and House, the governor is the only man standing between the people and the DFL's massive, job-killing, family budget-busting tax increases for all Minnesotans. Pawlenty has the power of the line item veto and unallotment to protect the taxpayer, and he plans to use it if necessary. Bully for him. Stand strong, Governor Pawlenty, for government that lives within its means.

The taxman cometh

Rep. Sarah Anderson (R-Plymouth) reports that the DFL House tax omnibus bill (HF2323) contains a laundry list of tax increases, all of which Gov. Pawlenty has promised to veto.

"If you earn over $16,000 in income, your taxes are going up," said Anderson in an e-mail to constituents. "Starting at $30,000 in income, there are more losers under this bill than winners. Most people don't think of $30,000 in income as being wealthy."

Here is a peek at some of the "revenue enhancements" proposed by the DFL:

• Increases taxes overall by $1.5 billion


• Increases sales tax by .5 percent through county adoption


• Eliminates mortgage interest deduction from income taxes


• Eliminates property tax deduction from income taxes


• Eliminates education tax credit


• Eliminates long-term care insurance premium credit


• Eliminates child/dependent care tax credit


• Eliminates JOBZ economic development tax credit


• Reduces the Market Value Homestead Credit for homeowners


• Eliminates organ donation deduction from income taxes


• Eliminates charitable giving tax credit


• Imposes tax on digital downloads such as iTunes, books, etc.


• Imposes sales tax on boats, snowmobiles, and ATVs sold by an individual


• Increases taxes on cigarettes


• Increases taxes on beer, wine, and liquor


• Creates 4th tier income tax bracket increasing taxes on small job providers


• Eliminates gas tax credit for the poor that was created just last year


• Increases property taxes by lifting levy limits on cities (county limits are lifted in 1 yr)


• Imposes new tax on heating fuels for homes of a certain size

"The money won't go to schools, public safety, or veterans," said Anderson. "Last week a bill passed giving $50 million for the St. Paul RiverCenter hockey arena. Another bill passed spending $200,000 on a new program called the Indigenous Earthkeepers that will educate certain kids age 15 to 19 years on the environment. Lastly, legislation passed extending welfare benefits to illegal immigrants."

Click this link to urge your legislators to solve our budget deficit responsibly, without raising taxes.

Tim Pawlenty, Jason Lewis address Tax Cut Rally

Thousands gathered Saturday afternoon at the Tax Cut Rally at the Minnesota State Capitol, many for the second time in as many months, to hear speakers, including Gov. Tim Pawlenty and nationally syndicated talk radio host Jason Lewis, speak out against tax increases and excessive spending. They also visited exhibitors that included sponsors from the Taxpayers League of Minnesota, Minnesota Majority, and 100.3 KTLK-FM.


Pawlenty pledged to veto any tax increase reaching his desk. Lewis commemorated the tenth annual Tax Cut Rally and vowed to fight for freedom and lower taxes. The Legislature, in session during the rally, was admonished more than once to "live within our [the state's] means."

The event had an added dimension compared to the April 15 Tea Party: a conservative issues fair, with over thirty organizations as large as Borders Books, the Libertarian Party, and the National Rifle Association, and many small organizations.


The crowd was peaceful and even festive. One of the booths was set up with laptop computers for attendees to electronically sign a petition to Pawlenty, urging him to veto any tax increase sent to him from the Legislature. Another of the booths was set up as a "Freedom Shrine" with copies of historic documents and portraits of American founders. Minnesota Majority gave away free printed booklets containing the text of the Declaration of Independence and Constitution. Food booths from barbecue to cheese curds to ice cream served long lines of customers.

Tax and bonding bills reach conference committees

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
Taxman!
'Cause I'm the taxman, yeah I'm the taxman
—"Taxman" by George Harrison

As reported by Dan McGrath of Minnesota Majority, the Minnesota House and Senate omnibus tax bills are overflowing with tax increases (i.e., veto bait) for all Minnesotans, not just "the rich:"

[WARNING: The following explicit tax increases may offend some fiscal moderates and conservatives. Reader discretion is advised.]

The Senate plan (SF2074) calls for across the board income tax increases and a new top tax bracket of 9.25% to collect $2 billion in new revenues. The House plan (HF2323) is a patchwork of tax hikes on income, tobacco, alcohol, recreational vehicles, and even includes a tax on homeowners who have higher energy (natural gas) use during winter months...

The House bill also eliminates some pretty substantial tax deductions, like the mortgage interest deduction and education tax credits. A slew of other changes remove subtractions from federal taxable income and throw in some additions, like motor vehicle and property taxes paid, and some charitable contributions. All of this has the effect of inflating the amount of personal income that the state will compute taxes on. The House tax bill also establishes a new top tax rate of 9% on income over $169,000 (or $300,000 for married couples filing a joint return).

And don't forget Rep. Jim Davnie's (DFL-Minneapolis) proposal to tax purchases from online stores like iTunes and Amazon.com. Governor Pawlenty promises to veto all of these tax increases should they reach his desk.

Rep. Sarah Anderson (R-Plymouth) has her eye on the "emergency" bonding bill, also in conference committee. The Legislature typically passes an omnibus bonding bill in odd-numbered years only for structures in dire need of repair. Apparently, our DFL-controlled legislature is not about to let a good crisis go to waste, because Anderson reports that the bonding bill could exceed the customary limit of 3% of non-dedicated general fund revenues.

Why does this matter? If borrowing exceeds the three percent cap, the interest rate we pay on bonds will increase. "Consequently," said Anderson in an e-mail to constituents, "we will pay more for the bonds at a time when [the state is] $6.4 billion in hole. In addition, school districts will pay more for bonds for their building projects since their bond rating is tied to the state bond rating." Can you say, "property tax increase?"

It's time to send a message to the Legislature that a recession with high unemployment is the time to cut spending, not raise taxes. Stop by the Tax Cut Rally at the State Capitol grounds this Saturday, 11 am - 4 pm, and make sure the Legislature gets the message loud and clear. When he makes his appearance at the annual rally around 1:00 pm, you'll also have a chance to encourage Gov. Pawlenty to ink-up his veto pen and say, "Go ahead, make my day!"

Missing at Tea Parties: right wing extremists

Hennepin County Commissioner Jeff Johnson got it exactly right in his assessment of the Saint Paul Tax Day Tea Party ("Perception of Tea Parties was incorrect," Star Tribune, April 26).

...I saw thousands of average, hard-working Minnesota taxpayers (many with family in tow) respectfully voicing deep concerns about the future of our country...This was about spending at the federal level that has gone completely berserk, about an exploding deficit that threatens the quality of life of our kids (and probably that of our kids' kids), and about a bailout mentality in Washington that turns the capitalist foundation of this country on its head.

There were few if any "right wing extremists" at peaceful protests across the country on April 15, and I hope that the Department of Homeland Security was not wasting its resources spying on the law-abiding working folks there.

Many on the left are constantly stereotyping or attacking the messengers, while refusing to engage in civil and reasoned debate on tax — and spending — policy. A canard that I noticed circulating in the leftmedia and Twittersphere was that the Tea Party was a protest against all taxes. It goes something like this: "I wonder if they enjoyed driving to the Tea Party on taxpayer-subsidized roads," or "I pay my taxes so we can have police, fire departments, and veterans benefits."

Nobody at the Tea Party is against taxes for legitimate functions of government, so let's put an end to that straw man argument. The Tax Day Tea Parties were a protest against excessive taxation and wasteful spending, making them more akin to Shay's Rebellion than the Boston Tea Party (sorry, Rick Santelli).

Even with the DFL's across-the-board tax rate hikes heading for a veto, it's more important than ever for fiscal moderates and conservatives to make an afternoon of it this Saturday at the Tax Cut Rally, State Capitol grounds, 11 am - 4 pm. There will be plenty of people to meet and things to do and learn for the whole family. The keynote speaker is Tax Cut Coalition icon Jason Lewis, and Gov. Tim Pawlenty will make his first appearance at the annual event.

Seifert and Brod review the DFL tax bill

Check out this video of Monday's press availability of House Minority Leader Rep. Marty Seifert (R-Marshall) and Rep. Laura Brod (R-New Prague), Republican Lead on the House Taxes Committee. It very clearly explains why the DFL budget raises spending to unsustainable levels, raises taxes on everyone in Minnesota, and represses job creation: precisely the wrong answer to our state's budget crisis. It also shows Seifert's mastery of his position as caucus leader and spokesman in the House, and a rising conservative star in Brod.

This leadership should be supported with a call to your legislator, urging the reforms and responsible spending cuts advocated by Gov. Pawlenty, Minnesota Budget Solutions, and the Center of the American Experiment. And in case they don't get the message, multiply your voice at the Tax Cut Rally, Saturday, May 2, 11 am - 4 pm, at the Capitol.

Saint Paul Tea Party speakers call followers to action

Twila Brase, President of the Citizens' Council on Health Care: "Do we want to be the land of 10,000 bureaucrats?"

Jim Schottmuller, 2008 Ramsey County Commissioner candidate: "Get involved..."

Chris Baker, 100.3 KTLK-FM: "We're not going away."

Thousands at Capitol say they are "Taxed Enough Already"

An orderly yet passionate crowd of several thousand gathered on the south steps of the Minnesota State Capitol yesterday evening for the Saint Paul Tax Day Tea Party to protest high taxes, deficit spending, and excessive government intrusion, especially from the federal government. The bright white capitol rotunda contrasted with the bright blue sky to greet the after-work crowd, many carrying homemade signs and American flags.

Speakers included Barb Davis White, former candidate for Congress; Dave Thompson, former talk radio personality and candidate for chairman of the Republican Party of Minnesota; President of the Citizens Council on Health Care Twila Brase; 100.3 KTLK-FM personality Chris Baker; Taxpayers League of Minnesota president Phil Krinkie, and others. The program was emceed by KTLK-FM personality Sue Jeffers. Jeffers ran against Gov. Tim Pawlenty in the 2006 gubernatorial primary election. (That's the irrepressible Jeffers at the end of my video embedded in this article.)

Many in attendance dropped a tea bag into a wooden crate, to be delivered to the Minnesota Legislature as a symbolic statement opposing any new state taxes and spending.

Contrary to orchestrated liberal talking points repeated on the Internet and in the mainstream media, the protesters were obviously not opposed to taxation for legitimate functions of government such as roads, public safety, and veterans affairs. Contrary to liberal ad hominem attacks, the protesters were clearly educated, veterans, families, young and old, men and women, many of whom had never attended a political rally before (including some of the event organizers). Contrary to what the leftmedia and the Department of Homeland Security would have you believe, they were far from extreme in appearance or behavior (very different from your typical Code Pink rally, for example).

And contrary to Internet reports, the Saint Paul Tea Party, and hundreds like it across the country, was staged by volunteers, not by any political party, special interest group, or Fox News(!). Notably, the mention of politicians like U.S. Sen. John McCain (R-Arizona) and Pawlenty were greeted with audible ambivalence.

Baker and others urged the crowd to think of the Tea Party as a beginning, not an end in itself. Another speaker encouraged everyone to see the web site After the Tea Party for ideas to continue the movement toward liberty, lower taxes, and limited government. Krinkie reminded the crowd of the May 2 Tax Cut Rally featuring nationally-syndicated talk show host Jason Lewis, beginning at 11:00 am on the Minnesota State Capitol steps. Additional rallies nationwide are also planned for Independence Day on Saturday, July 4.

For coverage of this and all other national Tea Party events, with video and tons of photos, see Pajamas TV and True North (the latter was a local Tax Day Tea Party co-sponsor). I will also post some additional video within a few days.