Who “creates” jobs?
April 5, 2013
We’ve heard a lot of talk in St. Paul about “job creation” – especially from our DFL state leaders, like Governor Dayton, and their strong union allies. Their formula for more jobs is to tax families and businesses more, then grow the role and size of government and employ more government workers. These jobs, no matter what economic circumstances we find ourselves in, never go away and never stop growing in volume. After just two months of total DFL control in St. Paul, we haven’t seen one legitimate proposal to grow jobs in the private sector without exploding government spending.
What we have seen are bills to increase the minimum wage by 45%, require Minnesotans to use solar panels, and the creation of the largest government intrusion into the health insurance industry of our lifetime. These bureaucratic nightmares, quickly coming to life, are only made worse by the DFL’s proposals to implement the largest set of tax increases in Minnesota history. A guaranteed job-killer.
Gov. Dayton even wants to tax senior “snow birds” who move south for the winter months for each day they spend outside the state. It’s a move that may violate interstate commerce laws and would be expensive and near-impossible to enforce.
The Democrats haven’t offered “reasonable” ideas when it comes to your wallet. In the last few weeks, the legislature has seen bills to increase the alcohol tax by up to 700%, expand the sales tax to personal services and clothing, raise the income tax on small businesses that file individually, an explosion in the tobacco sales tax, a new sales tax to fund buses and trains (whether you use them or not), and a new professional services sales tax that will force businesses to lay off workers and local governments to raise taxes. Here are just a few of the ideas proposed this year:
• Energy rate tax
• Mortgage and deed tax
• Alcohol tax (up 350 percent)
• Auto insurance tax
• Solar tax
• Gas tax (up 10 cents per gallon)
• Estate tax
• Snack tax (nuts, seeds, popcorn, pretzels, chips, cookies, ice cream novelties)
• Vehicle excise tax
• Electricity surcharge tax
• Frac sand tax
• Health insurance premium tax (3.5 percent)
• License plate tab fees (up $10)
• Cosmetics tax
• Wheelage tax (up $15)
These changes will make Minnesota an island in the Midwest, driving out business and discouraging innovation. It is the “perfect storm” of government overreach.
Yet, right before our eyes, we can see signs of what does work. Last month, Minnesota’s Office of Management and Budget released their annual February forecast which shows Minnesota’s projected budget deficit far below what it was two years ago. Since Republicans passed a pro-jobs budget in 2011, Minnesota’s economy has been on a steady, positive path. It is now quite evident that growing the economy means more than creation of new government programs. It is fueled by limited spending and competitive tax rates that keep pace with the average family and their economic circumstances. Government growth should never outpace average household income.
Both Governor Dayton and the DFL have offered plans for new taxes and higher spending well into the future, but one DFL legislative plan goes one step further and establishes a “fifth tier” income bracket on wealthy individuals which will leave consumers paying more, cost us jobs and make Minnesota less competitive in the global market. Combined with federal and local taxes, they want the highest group of income earners (also farmers and small businesses) to pay over 50% of their income to the government. Insane.
This comes at a time numerous states are looking at eliminating income tax systems. Because of smart financial decisions in 2011, our economy is heading in the right direction and revenue is rising by about 3 percent on its own, without the need of tax increases. Their plan is to kill private sector jobs through more taxes, fees and regulations, in order to expand public employee positions. Today’s DFL majority in St. Paul needs to hear from you.