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Posted by: Jeff Davis 2/12/2008

Today DFL leaders introduced a new transportation bill calling for a whopping $8.5 billion tax increase over 10 years.  At this morning's press conference, Senator Steve Murphy (DFL, Redwing), chairman of the Senate Transportation Committee, tried to position the bill as a "jobs program", claiming the additional spending would create 33,000 new jobs each year for the next 5 years.  The specifics of the proposal include:

-- 25% increase in the state's gas tax, with annual automatic increases pegged to the CPI

-- 1/2 percent sales metro sales tax increase (with the possibility for similar increases outside the metro area)

-- increases in motor vehicle registration tax.

Senator Murphy claimed that the indexed gas tax increase would avoid the state legislature from having to revist the gas tax issue on a regular basis.  But Wisconsin recently rescinded a similar automatic gas tax increase because it resulted in the state having one of the highest gas tax rates in the nation. 

Bill sponsors included a $25 tax credit to offer an offset for low-income households.  But the proposed tax increase amounts to over $4000 per household over 10 years, eclipsing any proposed offset.  Gas prices are already at record levels and Minnesota is in an economic slowdown.  The proposed tax increase would further put the brakes on Minnesota's economy and place a huge additional tax burden on those least able to afford it. 

The bill includes funding for light rail, a proposal that many people believe has more to do with social engineering versus addressing existing public needs.  David Strom of the Free Markets Institute comments on light rail proposals in his recent column entitled, "A Boondoggle at Any Price".

Bill opponents also claim that there's plenty of money available to fund required improvements to Minnesota's transportation infrastructure.  The basic issue comes down to better allocating state and federal tax dollars towards the highest priority projects.

Senator Murphy suggested that DFL leaders were planning to "fast path" the bill through the legislature so that it would be on the governor's desk by the end of February.  When questioned about trying to comprise with those who might oppose this legislation, Senator Murphy seemed to suggest that comprises would not be considered.

You might recall that Senator Murphy was the legislator who went on a tirade after the I-35W bridge collapse last August, implying the collapse was due to inadequate funding for maintenance.  Murphy used the incident to call for a substantial increases in transportation funding and the resignation of Transportation Secretary Carol Molnau.  Recent findings by the National Transportation Safety Board, however, indicate that the bridge collapse was likely due to a design flaw, not a lack of maintenance.  A review of the facts suggests Minnesota may have an issue with how tax revenue is being allocated, not a lack of funding.

Send a message to your elected officials to tell them to SAY NO to this massive spending boondoggle.

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Re: DFL Leaders Propose Massive $8.5 Billion Transportation Tax Increase    By bobbie on 2/16/2008
Clearly, as usual, it is money to divert. The people in legislation proposing any tax increase are the exact ones that divert the funds, give themselves raises and help themselves to per diem. If this does or does not include the 1/8 of a percent for privileges suggested to go to: unspecified "outdoor programs?", "arts" transportation", these are PRIVILEGES that pay for themselves. And if MOST people are getting it for free then MOST people should be charged as SOME already are. Environment is handsomely paid through lottery proceeds and licensing fees.
Senator Anderson suggests "most people" who enjoy the outdoors would want this increase? I propose the legislation focus on the NEEDS of ALL and not privileges. We are sick of the waste of our time and money going to the ignorance of most of legislation allocating funds in another direction then they propose which does not include ALL. We are in a deficit thanks to Government greed and bias allocation of our hard earned money. They've been getting away with it far too long. One more thing, we want free enterprise not more government jobs!

Re: DFL Leaders Propose Massive $8.5 Billion Transportation Tax Increase    By Paul M on 2/19/2008
I just sent this email over to the Governor and my local Representatives:

Please correct me if I'm wrong.

Everyday we are bombarded by Democrats that we are in or near a recession. The economy is crap, people are losing their homes due to foreclosures and poor decisions regarding the funding of their homes, but lo and behold the Democrats in the Senate and House want to increase taxes on those people who don't need the added burden to their income.

Gas prices are at a record high, but guess what they want to increase taxes on the price at the pump.

Democrat legislatures as well as the Governor want us to be more fuel efficient and drive all these hybrid cars that use less gas. Well guess what?? If we use less gas that means less money going into the gas tax fund?? Why should I have to foot the bill because the government is legislating fuel economy standards for us which means less funding for the government? I say let them lie in the bed they make!
We don't need funding of Arts programs when we obviously need funding in more dire places such as transportation and in transportation I mean ROADS not choo-choo trains. Lets cut those programs!

By the way, what happened to that admendment we voted in 2006 that was supposed to save us all by dedicating the state's gas tax to transportation funding?? Where did all that money go?
We need accountability for this money!

I thought the Democrats were supposed to save us from ourselves? Now we need saving FROM the Democrats!

If this isn't true, please have a Democrat go on the record at their next news conference and explain to the people that the economy is doing great and we the people can and should afford these increases in taxes!

Re: DFL Leaders Propose Massive $8.5 Billion Transportation Tax Increase    By Clint Deraas on 2/29/2008
I too would like to know where the gas tax money currently collected is going or has gone! I'd also like to know what the state is doing with all the lottery money they collect. I thought these funds were going to take the burden off tax payers. Tax collections are at rediculous levels and STILL this obese government cannot be satisfied. I think Mr. Pawlenty is correct, we NEED a tax revolt!


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November 20, 2008
 
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