By Patrick Tepoorten
Taxpayers had a ring-side seat last week for the DFL majority’s passage of a massive tax increase for transportation. The cost of the seat, though, was enough to make even the greediest scalper blush: $6.6 billion, the single largest increase in state history. In the best of times, a bitter pill. In times of rising prices, rampant home foreclosures, flat job prospects, and a recession, downright irresponsible.
Perhaps worse, it was foisted on a people who showed no desire to absorb it. In a recent SurveyUSA poll, 59 percent said the state should not increase the gas tax, and 62 percent opposed increases to license fees; solid majorities by any measure. This, despite the almost constant emotional drumbeat of the bridge collapse. Perhaps legislative tone deafness explains why only 29 percent are satisfied with its overall performance.
Taxpayers should note that both local legislators, Sen. Rick Olseen and Rep. Jeremy Kalin, strongly supported the increase, even as they warned of recession. But, while the feds recognize the best way to deal with a recession is to return taxpayers’ money, the state preferred to fix its recession and deepened ours.
Kalin partially based his support for the tax hike on the “relief” it will bring to property taxes. One has to wonder how long it will be before that relief is but a distant memory, if indeed it manifests at all.
In 2008, Chisago County increased its levy 10 percent, North Branch - 9.7, Rush City - 30, Stacy - 18. There is no reason to believe there won’t be more next year. The North Branch School District has made official its intention to levy for high school improvements, both the district and the city intend to push referenda in the next two years, and the county is building a jail.
As with most relief packages, any “decrease” (read as smaller increases) in property taxes will quickly be absorbed by the bodies that rely on them, until we are right back where we are now or worse, with an additional $6.6 billion responsibility - $500 a year for a family of four making between $49,000 and $79,000 - and even higher gas prices. Oh, and the state is facing a billion dollar shortfall this year and even more the following year.
A word of advice: Enjoy the “relief” now.
Olseen highlights the economic stimulus aspect of the package, as if taking money from Peter and giving it to Paul is somehow a boost. Sure, it may provide some work, but in the end it isn’t stimulus, it’s simple redistribution, and not at all coincidentally to the very same entities who pushed the increase.
Speaking of redistribution, the state’s infinite generosity with your money also includes $25 income tax credits for the “lowest tax bracket” (read as non-taxpayers). Taxpayers have the distinct pleasure of funding not only the historic increase, but also a lessening of the resultant financial burden for those who won’t contribute at all.
No one disputes that roads and bridges need attention. But, like most taxpayers, I am sick of watching the state waste money hand over fist and then raise taxes because it’s easier than cleaning house, re-prioritizing, or, heaven forbid, cutting elsewhere.
Unfortunately for the people who work hard to earn the money to fund state plunder, this may be just a beginning. On the heels of this historic fleecing, the legislature will push another one, the $6.8 billion “Legacy Act,” in this fall’s election, along with an extra billion for education.
One might think, with the emphasis the DFL majority put on this huge tax increase, citizens were clamoring for it. Nothing could be further from the truth. In the same poll noted earlier, only 19 percent thought transportation funding was a top priority. More people than that voted for the generic “other.” Contrarily, 51 percent said balancing the budget was key, and 58 percent want it done with cuts, not tax increases.
Here’s something for voters to keep in mind in upcoming elections at all levels: As you pull the proverbial lever, ask yourself if the candidates have even the slightest interest in your budget, or if they are interested only in governments’. If the answer is the latter, your vote will be the last chance you have to show how much yours matters to you.
Use it wisely.
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