Democrats hoped when they passed the Omnibus Tax Bill HF1777[i] last week their constituents and voters wouldn’t be paying attention.
The bill as written had some Republicans voting yes and others no. A yes vote was a show of support for at least some tax reductions. A no vote on the other hand signified that the bill didn’t go far enough or there were other things in the bill that were bad.
It really didn’t matter how Republicans voted on this bill as the Democrats controlled the writing, amendments, final passage, the conference committee with the House and of course the governor’s signature.
In the 2013 legislative session the DFL-controlled Legislature and Gov. Mark Dayton passed $2.1 billion in tax increases on taxpayers in Minnesota, another $500 million in increased fees, increasing state spending by almost 10 percent. Do you remember what a 10 percent increase looks like when compounded? That is how much the Democrats are growing state government.
Keep in mind that John Spry, associate professor in the Department of Finance at the University of St. Thomas stated: “At the proposed federal plus Minnesota income-tax rates, each extra dollar of government spending is likely to cost the private sector around $1.25 to $3.00[ii].”
In a political effort to beg for forgiveness in this 2014 election year, Democrats decided to take a Republican posture and lower taxes that they just raised last year. The difference between the two parties is Democrats only want to give enough back to gain forgiveness and get re-elected. What they don’t want you to look at is, “the devil is in the details” in this bill.
Dayton and the Democrats in the Legislature are only sending back 30 percent of the $1.2 billion surplus their tax increase created to Minnesota families[iii]. Democrats intend to use the rest to satisfy their insatiable appetite for spending on their pet projects.