Governor, please don't quit!

Tax Chair Davids pleads with Governor Dayton to not give up on 2011 Legislative Session

ST. PAUL – Minnesota House Taxes Committee Chairman Greg Davids (R-Preston) said he was disappointed with Governor Dayton’s recent comments about calling a special session.

“Governor Dayton’s a good man, and he’s already shown leadership on several legislative issues this year,” Davids said.  “But as I said in tax committee this morning: Governor, please don’t quit.  Please don’t give up.  17 days is a lifetime, we can make this work.  Please don’t quit.”

Davids said state lawmakers do not share Governor Dayton’s appetite to wave the white flag and be forced into a special session that could waste countless taxpayer dollars.

 

“It is astounding to me that the Governor would rather call a special session than force government to live within its means,” Davids said.  

Davids noted that if government spent only what it collected, spending could increase by nearly $2 billion – or 5.5 percent – without needing to raise taxes.  Yet Dayton said “we won't leave the session with a budget that's $34 billion, we'll leave the session with it unresolved.”

“It is remarkable that the Governor doesn’t believe a $2 billion raise is enough of an increase for state government programs,” Davids said.  “Minnesotans are paying record prices at the pumps, at the supermarket, and for their energy, and yet Governor Dayton still insists on calling for tax hikes.”

Davids also noted that Governor Dayton has not been engaged in the conference committee process and is not sharing his likes and dislikes with the Legislature’s budget proposals.

“The commissioners sit at the hearings, but they don’t say anything because they’ve been told they can’t speak for the Governor,” Davids said.  “We’d prefer to have Governor Dayton give us some input so we can present him bills that he will sign, but to date, he has been unwilling to share his thoughts.”

“On behalf of the people of Minnesota, I encourage Governor Dayton to avoid throwing in the towel.  Growing up in rural Minnesota, I was taught that winners never quit and quitters never win.  Governor Dayton, please don’t quit.”  

Sticker Shock

The grocery store is more expensive.

The thermostat is more expensive.

Clothing is more expensive.

A burger and fries is more expensive.

Bacon is more expensive.

The gas station is more expensive. 

And Governor Dayton still thinks now is the time to raise billions of dollars in taxes to fund billions of dollars in more government spending.

 

GOP leaders travel the state talking budget

News stories from around Minnesota as GOP leaders traveled the state talking about the budget.

Rochester Post-Bulletin: GOP touts budget during Rochester visit - with video.

KAAL TV: Minnesota lawmakers back at work. 

Mankato Free Press: GOP gives update on budget - with video.

KTOE Radio: Republicans unwilling to raise taxes.

St. Cloud Times: GOP leaders say cuts necessary to curb deficit.

Moorhead: Republicans stop in Moorhead to promote budget plan.

Bemidji Pioneer: GOP leaders conduct budget balancing flyaround.

KBJR Duluth: GOP leadership promotes budget - with video. 

WDIO Duluth: GOP tours state, pushes budget plan.

FOX 21 Duluth: GOP leaders in Duluth to promote their budget for Minnesota.

Speaker Zellers gives a session update

Breaking: New information finds Dayton's tax increase proposal would impact ALL Minnesota income levels

Tax Committee will reconvene to discuss recently revealed information

ST. PAUL – Based on new information that Governor Mark Dayton's tax plan will impact many more Minnesotans than the so-called "rich", Minnesota House Tax Committee Chairman Greg Davids (R-Preston) will reconvene the tax committee on Thursday to share and discuss the potential ramifications.

“After reviewing the update to the 2011 Tax Incidence Study, the one thing that stood out was that the Governor’s tax hike plan would increase taxes to Minnesotans on every income level, not just the people he considers rich,” Davids said. 

Davids said the governor’s tax proposal would level Minnesota with the third highest income tax rate in the country.  His tax plan also contains a tax increase on large Minnesota employers and a statewide property tax increase on high valued properties.  

One of the stated goals of the Governor's tax plan is to make Minnesota's tax system more progressive.  Yet Davids noted that when the budget forecast improved, he backed away from his plan to implement the highest income tax rate in the country - a rate only the top 1% of incomes in Minnesota would have paid.  Further, the Governor completely ignored another way to make Minnesota's tax system more progressive - reducing taxes on low-income Minnesotans - something House Republicans did include in their budget.

“It makes you wonder if the Governor proposed these job killing income tax increases because he thought they would make our tax system more progressive, or if he proposed them simply to avoid making a difficult, fiscally responsible decision,” Davids said.  "I wouldn't call raising taxes on hard working, low-income Minnesotans very progressive."

Governor Dayton has continued to advocate for his income tax proposals even though not one state representative voted for his plan when it was brought up for debate on the House floor.

“The Governor put all of his eggs into one basket by taxing our job creators,” Davids said.  “If the Governor is trying to bring more jobs to Minnesota, why does he continue to push for job killing tax increases on Minnesota employers?  The end result will be fewer jobs created and lower wages for workers.”

Davids said the Governor should abandon his attack on hard-working Minnesotans and instead offer real reforms which will control state government spending, return fiscal sanity to our great state and show the world that Minnesota is open for business.

“The Republican-led legislature has not only shown true leadership by proposing nation-leading government reforms, but by providing tax cuts for all Minnesota taxpayers through the income and property tax system,” Davids said. “We opted not to take the easy way and force tax increases on job creators.  Instead our plan makes the tough choices necessary to streamline government for the 21st century and reduces the tax burden on main street businesses across the state.” 

“Our proposals encourage job-growth and expansion by Minnesota companies so we will continue to be on the leading edge of the economic recovery, and we strongly encourage Governor Dayton to follow suit,” Davids concluded.

The House Taxes Committee will discuss the update to the 2011 Tax Incidence Study during its meeting on Thursday, April 7, at 10:15 a.m. in Room 200 of the State Office Building.