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Location: Blogs Jeff's Blog |
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| Posted by: Jeff Davis |
2/28/2008 |
What a difference a year makes. Last year, Minnesota was sitting on a $2 billion budget surplus. Today Governor Tim Pawlenty announced that Minnesota is facing a projected budget deficit of $935 million. State revenues have slowed as both individual and corporate income tax collections have fallen. At the same time, state spending has increased. By all accounts, Minnesota is currently in a mild recession which is expected to last for at least the next six months.
Minnesota is required to balance its books every two years, suggesting that the state must now either cut spending or raise taxes. On the heals of the DFL-controlled state legislature just passing the single largest tax increase in the state’s history, Pawlenty was clear – he intends to cut spending. “Raising taxes is not the answer to balancing our budget. Like families and businesses are doing in this tough economy, government needs to tighten its belt and live within its means. I will not allow this session to turn into a parade of DFL tax hikes", said Pawlenty.
DFL legislative leaders may have other plans. They announced at least two initiatives to raise new tax revenues: going after corporations that operate overseas and collect taxes on business executives who work in Minnesota but declare residency elsewhere. For now, however, DFL leaders appear to be holding off on re-introducing last year's proposal for an income tax rate hike. They appear wary to propose more tax increases given the intense negative public reaction to their massive transit tax increase that was just passed by an override of the Governor's veto. |
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Re: Budget Forecast Predicts Nearly $1 Billion Deficit |
By Dustyn N on
3/13/2008 |
| Our Governer needs to stop siding with the DFL who are tanking our economy and don't care. They don't care that now with their biggest tax hike in state history, it hurts all families. We need to vote out as many DFL loosers who have no concept of economics. Clearly they would submit a tax hike and the governer would sign it in to law to hire a crew to dig holes and then hire a crew to fill them back up and somehow think they are creating jobs. They are OUT OF TOUCH and need to go!! Some GOP need to be cleard out of this state too, but the voters will take care of the 6 back stabbers. Hope you enjoyed your time loosers and get a real job instead of riding on the taxpayers all your pathetic lives. Time to take government back and reduce the size and grow the economy... Nice how ethonol worked out, it was a lose lose, what another bright idea by the left, how you all suck. |
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Re: Budget Forecast Predicts Nearly $1 Billion Deficit |
By bobbie on
3/13/2008 |
| How about an ethics rule ,Governor? As long as there are "special interests" that are not of interest to ALL, no proposal of tax increases allowed. And as long as the legislators look to fund privileges for some instead of priorities to ALL and when in a deficit...NO RAISES and to offset the deficit REMOVAL OF "SPECIAL INTERESTS." The government is accountable for the wasting of the surplus and the cause of the deficit. All involved are undeserving of wage increase and should actually be demoted or removed. Let's see some accountability, Governor. Looking forward to it. Thank you. |
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