From the Taxpayers League of Minnesota
1. Here Comes the Tax
Debate
2. Sales Tax Increases, Round
2
3. The “Train to
Nowhere”
4. Taxpayer
Field
5. Do You Want a Piece of the
Bailout Pie too?
1. Here Comes the Tax
Debate
This Thursday the state budget forecast will show us how many billions of
dollars the state is in the red.
Projections say it could be as much as $4 billion, and with the economy
the way it is, most won’t be surprised.
As in the past, you can bet that the DFL-controlled legislature will
claim tax increases are the only way to balance the budget.
Already Speaker Margaret Anderson Kelliher has been talking about more
taxes. The Bemidji Pioneer reports
her as saying, “Always the hope is to do it mainly
through reductions or program changes.
I’m not sure it’s going to be completely possible.” Come on, Ms. Kelliher, it doesn’t matter
how large or small the budget shortfall is, you’ll always propose raising taxes
first.
Kelliher then goes on to say that the real challenge is how we can
balance the budget and still invest in things that “make
Minnesota
stronger.” That is code word for
“even though we have a $4 billion budget shortfall, we still need more
spending.”
Once again, hold on to your wallets,
Minnesota! January 6th, and the start of
the 2009 legislative session, is just around the corner!
2. Sales Tax Increases, Round
2
Other legislators have piped up regarding the budget shortfall debate too. Sen. Tom Bakk, Chairman of the Senate
Tax Committee, said that we can expect many cuts to the state budget, as tax
increases alone won’t do the trick.
We’re pleased with that line of thinking.
However, Bakk went on to say that one proposal he is looking at is to
broaden the state sales tax “to include products and services that are currently
exempt.” It seems we were warning
of this proposal during the No Sales Tax Increase campaign…and, unfortunately,
it turns out we were right again.
3. The “Train to
Nowhere”
Phil
Krinkie’s recent commentary on the “Train to Nowhere,” the proposed rail line from
Minneapolis to
Duluth, drew
expected criticism. The Duluth News
Tribune jumped into the fray saying, Traffic congestion, air pollution, gas
prices, the hassle of airport security, and high airfares have created a
positive perfect storm for passenger rail. More than 200 cities and counties are
actively asking Washington for
rail funding. Duluth
shouldn’t – and won’t play second fiddle.”
That is
precisely the point of Krinkie’s article: If there is this “perfect storm” creating
demand for passenger rail service, why aren’t greedy private entrepreneurs
lining up to build rail lines and run trains? Why are cities and counties lining up for
public subsidies? The answer is
pretty simple: the “perfect storm”
is the perfect opportunity for parasitic cities and counties to prosper at the
expense of taxpayers who will indefinitely subsidize the construction and
operation of passenger rail.
The
fundamental flaw of rail transit logic is that demand is high only because the
private benefit of a train ticket is paid for by someone else. If scamming taxpayers for private benefit
is the future that this rail line holds for us, it is indeed a “train to
nowhere.”.
4. Taxpayer
Field
Before Citigroup began to face financial problems, they decided to pay
$400 million over 20 years to have the naming rights of the new Mets stadium,
Citi Field. Now that taxpayers have
been forced to bail out Citigroup, two New York City Council members want them
to share the naming rights of the new Mets ballpark with taxpayers, and call the
stadium Citi/Taxpayer
Field. After
all the bailouts are over, how many other naming rights should taxpayers take
advantage of?
5. Do You Want a Piece of the
Bailout Pie too?
If everyone else is asking to be bailed out by taxpayers, why shouldn’t
taxpayers request money too? That’s
what Grover Norquist, President of Americans for Tax Reform, thought, and so he
sent his formal request to the Treasury.
The letter along with application asks for the
$700 billion bailout money be given to taxpayers via several tax cuts which he
lists. Although the letter will
probably never be taken seriously, it’s good to see there’s at least one good
idea out there!
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