For Minnesota GOP, extremism in defense of millionaires is no vice
Antitax Extremism in Minnesota
New York Times editorial
How far will Republican lawmakers go to protect millionaires? Those who think a default on the federal government’s credit seems implausible should take a sobering look at the “closed” signs dotting Minnesota. The Republican Party there readily shut down the state’s government on Friday by refusing to raise taxes on the 7,700 Minnesotans who make more than $1 million a year.
Gov. Mark Dayton, a Democrat, campaigned for office last year promising to raise taxes on high earners, so it was no surprise when he proposed a tax increase on families making more than $150,000 a year to help close a $5 billion budget gap. In negotiations with the Republican majority in the Legislature, he compromised and reduced the increase to those making $1 million or more, but Republicans are refusing to consider any income tax increase.
Like Republicans in Washington, they have the delusion that they can balance the budget entirely from cuts.
The governor proposed more than $2 billion in cuts but refused to slash billions more from education, health care and public safety programs. The Legislature also wanted new abortion restrictions and a voter ID law that Mr. Dayton had already vetoed. When he said no, lawmakers allowed the fiscal year to end without a budget, and state government officially shut on July 1.
More than 40 state agencies have closed, including the state parks over the July Fourth holiday. Courts and public safety agencies are operating, but essential services for the poor, like food pantries and child care subsidies, have evaporated. Many parents say they may have to quit their jobs if state-subsidized child care does not resume quickly. The shutdown will cost the state money, since many of the 22,000 laid-off workers will receive unemployment benefits and health insurance, while the treasury is unable to collect on tax audits, lottery tickets and park fees.
(Continued here.)
New York Times editorial
How far will Republican lawmakers go to protect millionaires? Those who think a default on the federal government’s credit seems implausible should take a sobering look at the “closed” signs dotting Minnesota. The Republican Party there readily shut down the state’s government on Friday by refusing to raise taxes on the 7,700 Minnesotans who make more than $1 million a year.
Gov. Mark Dayton, a Democrat, campaigned for office last year promising to raise taxes on high earners, so it was no surprise when he proposed a tax increase on families making more than $150,000 a year to help close a $5 billion budget gap. In negotiations with the Republican majority in the Legislature, he compromised and reduced the increase to those making $1 million or more, but Republicans are refusing to consider any income tax increase.
Like Republicans in Washington, they have the delusion that they can balance the budget entirely from cuts.
The governor proposed more than $2 billion in cuts but refused to slash billions more from education, health care and public safety programs. The Legislature also wanted new abortion restrictions and a voter ID law that Mr. Dayton had already vetoed. When he said no, lawmakers allowed the fiscal year to end without a budget, and state government officially shut on July 1.
More than 40 state agencies have closed, including the state parks over the July Fourth holiday. Courts and public safety agencies are operating, but essential services for the poor, like food pantries and child care subsidies, have evaporated. Many parents say they may have to quit their jobs if state-subsidized child care does not resume quickly. The shutdown will cost the state money, since many of the 22,000 laid-off workers will receive unemployment benefits and health insurance, while the treasury is unable to collect on tax audits, lottery tickets and park fees.
(Continued here.)
Labels: insanity, Minnesota, Republican Party
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3 Comments:
Please correct me if I am not correct in stating that the MN Republican proposal calls for a spending increase... It is dillusional (to use their word) for the NYT to refer to use the term slash and cuts in the same article without mentioning the proposed spending increase. The people of MN elected a legislature who promised to hold the line on spending and taxation. Thank goodness the NYT is not running our state, it could turn out worse than the finances of their paper.
Earth to Tom Koch: The increases in interest costs to the State are just one example of how Republican ideology has damaged our once-pristine AAA bond rating. What was gained?
If the Republicans consider the shifts and borrowing, the stimulus mis-use and the tobacco and MnCare thefts by the Pawlenty administration, they would see we still have to pay those debts that were incurred while pretending the budget was "balanced".
To use a favorite analogy of GOPers: If you buy a business, you don't get to shed that business' debt, just because you believe it isn't yours but the debts of the previous management.
The shutdown and the huge loss of revenue it has already caused is just one more example of Republican delusion- cutting state revenue in order to "kill" our government. Why do Republicans think that somehow they can ignore the Balance Sheet? Why do they simply refuse to use the State budget office numbers?
Tom, MN is not starting at "zero". We have to pay for the mismanagement and underfunding of the immediate past. I hope you can see this causes increases in spending, just to stay in the same, debt-driven holde Republicans have dug.
More spending will still "starve the beast" you call our government(s). How can a patriot embrace an ideology designed to destroy public institutions?
And btw, Tom, the NYT shouldn't receive your disapproval for telling the truth about Minnesota. Nowhere does it appear they are "running our state" or even care to.
Dear Anonymous – I appreciate your reply and enjoy a thoughtful exchange of opinions and ideas. This is not a rebuttal as you did not address the crux of my original point comment – for the NYT to describe the Republican budget as slash and cut is delusional when the Republicans are proposing a spending increase.
I agree with a few of your points and do not agree with others. Specifically;
Interest costs – I am concerned with any and all cost increases and not just the increase in interest costs brought about by a lower bond rating. Are you to suggest that if the state would spend more our bond rating would go up?
Shifts and borrowing – Accounting gimmicks and chicanery are wrong, no matter the party. When Pawlenty came out with what I call his tobacco ‘smoke and mirrors,’ I stopped supporting him ($) and contacted his office to help drive home the point.
“Kill” the government – I would disagree with those who want to “Kill.” I am in favor of putting government on a strict diet.
Starting at zero – You call it underfunding, I call it overspending. Are you to suggest that Democrat budgets never added to our spending? I do not support deficit spending no matter the party.
Starve the best – How can a patriot embrace spending levels that take us farther down the path towards financial oblivion? I’ve used the phrase “Starve the best” and admit that it is a bit harsh and might go with “Strict diet” from now on.
My final comment – you do not seem concerned with state spending increases, even well above CPI and population growth rates. I am deeply concerned that a growing segment of our society believes government is the answer no matter the issue. This view will lead us to the same state of affairs as Greece. I fear that we are not all that far from similar riots in the streets as our friends in Madison WI demonstrated when their perceived ‘entitlements’ were questioned.
Please consider what CG Jung said in Mysterium Conjunctionis, “Wisdom never forgets that there are two sides to everything.” You seem to want more spending, I would prefer we get our state finances in order. You frame each of your points around those nasty Republicans – I would urge you to instead open your thoughts to what might be good for the citizens of MN.
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