Senator Dan Hall's legislative update

Taxes

Last week the Minnesota Senate attempted to pass, failed, re-attempted and subsequently succeeded in passing its massive new tax increase bill. In an environment where fiscal moderates and conservatives are in the minority, the temporary defeat suffered by the DFL was surprising.  That the bill’s proponents were surprised is perhaps only just. Certainly the rest of us are in for a surprise if the Senate DFL tax bill becomes law.

The pre-election mantra that we were subjected to temporarily convinced most Minnesotans of one thing; there were nefarious rich among us who were keeping us down by their failure to pay enough taxes. The DFL promised us a brave new world paid for by taxes on the rich.

Six months later, the Senate DFL decided that the untapped rich among us are those making over $79,730 ($140,960 if filing jointly). Surprise! Apparently those of us who buy over the counter medicine, clothes, digital downloads, personal services, car repairs, maintenance and other things are rich too – because we’re now going to be taxed for those purchases. 

With the state’s economy growing, our tax receipts are already in excess of what was anticipated. The additional revenue coming from our existing tax laws already provide enough to fund the continued growth of government – except for a relatively modest one-time $600 million deficit. Given a need for $600 million, why increase on-going taxes $1.8 billion? Why tax earners of $79,730 as if they were rich? Why tax more of our purchases? 

The answer is, in part, this; the really rich have great tax attorneys and accountants and thus seldom pay for the policies and programs they liberally advocate. How else could it be that the unproductive heirs of historic business magnets continue to be rich despite decades and decades of inheritance taxes and other taxes?  If the really rich wanted their money to fund expanded government programs – they could simply give their money to the government. But the politically liberal rich do not want to fund government with their money; they want to fund government with your money.

I believe a second part of the answer is that true liberals (like those who direct the actions of the DFL) have a visceral need for the government to be present in nearly all aspects of our lives. Because liberals want the government to assume responsibility for the 24/7 on-line speech of your student, government needs more money and thus wants to tax over-the-counter medicine. Because liberals want to make your daycare provider a de-facto public employee, government needs more money and thus wants to tax the sale of clothes.

I have been contacted by many folks who tell me that they are considering moving out of Minnesota in an effort to preserve more of their freedoms/earnings. I encourage folks not to do that. Minnesota needs you.  Until the legislature changes my advice to you is: care for your family, work hard, barter when possible, be generous within your community, do not let the government turn you into a dependent, and keep on smiling.  

Education

Last week the Senate passed  SF 723, which would extend taxpayer financed benefits to post-secondary students who are not residing in the country legally. Such students would become eligible for both in-state tuition at public campuses and for financial aid at either public or nonpublic campuses if the following conditions are met: at least three years of Minnesota high school attendance and a diploma; compliance with selective service registration, and, if and when a federal process exists to legalize status, proof that an application has been made.

This measure was not included in either the House-passed or the Senate-passed omnibus higher education bills, but the Senate DFL Leadership has stated its intent to make it a part of any final compromise that emerges from that Conference Committee.

Legislative Survey

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