Transportation Fact Check...
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An article out of the Star Tribune does some fact checking of the recent rhetoric screamed from the rooftops of every right wing blogger and representative in the state of Minnesota. Obviously, those faithful right wingers will simply dismiss the fact checking as nothing more than the product of that scary liberal media.

Transportation Fact Check No. 1:

It was said that the newly enacted transportation bill will give Minnesota the seventh highest gas tax in the country. It's not so.

Minnesota's current 20-cent tax ranks 30th among the states as of January 2008, according to the American Petroleum Institute. When it goes to 22 cents on April 1, assuming no other state's rate changes, it will be tied for 25th. When the next 3.5-cent increase is fully added in October, again assuming no other state makes an adjustment, Minnesota's will rank 20th.

The remaining 3.5 cent per gallon tax increase for debt service authorized by the new bill won't be fully phased in until 2013. By then, the nine states whose gas tax rate rises automatically with inflation will almost certainly pay more than they do now. But even if those states freeze their rates at 2008 levels, Minnesota's 2013 rate will be less than the rate paid in 12 other states now.

What? You mean this tax is being phased in over a period of 5 years? Gosh, from looking at the response from Representatives Steve Gottwalt and Dan Severson, one might be fooled into believing that this gas tax is enacted all at once. I would say it was time for them to print a correction, but I would probably be given this response given that I am not in full agreement:



Transportation Fact Check No. 2:

The $6.6 billion, 10-year bill was said to impose the biggest tax increase in state history. It isn't close, when one considers the impact of inflation.

The tax-increase champ remains the Minnesota Miracle income and sales tax increase of 1971 -- $580 million over two years on a base general fund budget of $2 billion. The Miracle also reduced local taxes, creating a net tax increase of about 16 percent of total state and local taxes. By comparison, the transportation bill that became law Monday will increase state and local taxes by less than 2 percent in the coming two-year biennium.

Another perspective comes from state Senate fiscal analyst Matt Massman: Fee increases made since Tim Pawlenty became governor will result in the collection in this fiscal year of $550 million statewide, or about as much as the transportation bill will raise per year.


I really does pain me to always be right, but as I told Gary Gross, just because you keep saying it doesn't make it true. Perhaps if the Star Tribune would have read this post from Blue Man they could have released their fact check sooner because he beat them to the punch big time.
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3 responses to "Transportation Fact Check..."

  1. Gary Gross On March 3, 2008 at 3:52 PM

    Eric, You still haven't told me of another tax increase that was bigger. Until you do that, you can spin this whichever way you want but the facts remain undisputed.

     
  2. Political Muse On March 3, 2008 at 5:20 PM

    Did you read the post, Gary? The Minnesota Miracle of 1971 was much larger than this one and the fee increases of the Pawlenty Administration will bring in as much money as this bill will per year.

    Keep spinning Gary! :)

     
  3. Gary Gross On March 4, 2008 at 2:15 AM

    Actually, Matt Massman is off a little bit. First off, it's said to be a $6.6 billion tax increase over 10 years, making it $110 million a year bigger than the Pawlenty fee. Secondly, the money raised from the license tab fee increase will be bigger than Mr. Massman is predicting.

    I'd further ask how much money has been collected by the health fee increse. Will it average $550 million a year?

    I'll cede the fact that the Minnesota Miracle was bigger but that's the result of the DFL, too.

    In this current tax revolt climate, do you really think that saying that you only passed the 2nd biggest tax increase in state history will play that much better than passing the biggest?

     
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