From the St. Cloud Times:
Letter: Minnesota cannot tax its way to prosperity
By Rep. Steve Gottwalt, District 15A
Published: March 09. 2008 12:30AM
The recent announcement that our state is facing a $1 billion budget shortfall makes it hard to believe we had nearly a $2.2 billion surplus less than a year ago.But that's exactly where we are after only a year of liberal tax-and-spend policies.
In order to believe this claim, one must close their eyes and ears and avoid one obvious piece of evidence. The ONLY tax enacted by the DFL majority this past year has been the recent transportation bill with its gas tax.
If Gottwalt wants to try to make the claim that proposed tax increases created this budget shortfall, good luck to him, but the fact remains that no tax has been enacted that could have caused this shortfall.A little less than a year ago, on March 17, 2007, I stated:
"With a $2 billion budget surplus, there is no good justification for tax increases. We must move Minnesota forward and not backward into another deficit. Calls for tax increases when we have a state surplus are ridiculous. The added revenue we have available should be enough!"
But we did go backward into deficit.
So, now calls for tax increases create budget deficits? In turn, can simple calls for tax cuts cause prosperity? If so, our problems are solved because we can simply call for tax cuts and change nothing and thereby create prosperity.
... Given November's budget projection, I expected our Legislature to take a fiscally moderate tone. Instead, liberals kicked off this year's bonding session by pushing a constitutional amendment to raise our sales tax, and then ramming the massive $6.6 billion transportation bill down the throats of tax-weary Minnesotans.
Oh, those crafty liberals! They allowed the voters of Minnesota to make a decision about taxes and then created a budget neutral way to invest in our roads and bridges. By comparison, Mr. Gottwalt and his crew wanted to spend many billions more on roads and bridges but pay for it by sticking the bill on our children and their children. Perhaps if Gottwalt wasn't such a partisan, he might recognize the inconsistency in his message.
Even today, liberals argue that reaching deeper into Minnesotans' pocketbooks is the way to stimulate the economy and grow jobs. The truth is, growing, thriving businesses are the engine that generates sustainable job growth, and that engine is hampered by Minnesota's business tax climate — ranked among the worst 10 in the nation.
Looked at from a less partisan angle, the Department of Employment and Economic Development has this to say about our business climate:
Minnesota’s operating costs are competitive with the national average
According to a 2006 Economy.com report, the cost of doing businesses in Minnesota ranks 22nd nationwide, right behind Arizona, a state usually ranked in the middle. Considering the value of Minnesota workers and other services, the state is a great buy!
Minnesota is one of only 10 states in the country that received five stars from Expansion Management in its 2006 “Healthcare Cost Quotient.” Rankings consider indicators that affect healthcare expenses for employers such as health insurance and malpractice cost. The state ranks particularly high in the number of physicians and nurses per 100,000 population (7th) and facilities available and their costs (11th).
A 2004 study by the Federal Reserve Bank of Boston found that Minnesota ranked 41st in the ratio of taxes to total business profits, well below the national average.
