April 10, 2007
Apr 10 03:30 Speaking Out Against Property Taxes Apr 10 03:49 House Republicans Tell Pelosi to Return; Finish Unfinished Business Apr 10 10:26 Emergency Bonding Bill? Apr 10 10:59 A "Cheap Political Stunt"??? Apr 10 12:16 Done Deal On Twins Stadium? Apr 10 17:58 Good Cop, Bad Cop???
Prior Years: 2006
Speaking Out Against Property Taxes
Doug Fulton of the Minnesota Chamber of Commerce has made some great arguments for not increasing the property taxes paid on commercial property in this Your Turn article in the St. Cloud Times. Let's look at the most compelling argument he made:
Some legislators don't get it. Witness the fact the Senate DFL leadership is recommending an increase in the statewide property tax, which falls exclusively on commercial/industrial properties.This says that the DFL isn't satisfied with increasing revenue from commercial property taxes at the rate of inflation. The DFL is saying that they need more $$ to satisfy their spending needs. Instead of being satisfied with a $180 million increase, the DFL says that they need an increase of almost $690 million.
The statewide property tax is in addition to locally levied property taxes.
Under existing law, this tax increases each year by the rate of inflation and is expected to generate another $108 million in fiscal year 2008-09 and another $71 million in fiscal year 2010-11. Yet the recommendation is for an additional $222 million increase in business property taxes in fiscal year 2008-09 and an additional $467 million increase in fiscal year 2010-11.
Back in January, I ridiculed Margaret Anderson-Kelliher for her quote about the DFL being "a fiscally moderate caucus." I couldn't have known back then just how immoderate the DFL is. It's sad to think they're that irresponsible with the taxpayers' money. Here's another great point that Mr. Fulton makes:
Minnesota employers already are paying more than their fair share in property taxes - three times that of homeowners. But think again if you believe businesses simply absorb these higher costs. Business taxes are ultimately paid by individual taxpayers or households through higher prices, reduced wages and lost job opportunities. If business costs become too extreme, decision-makers will look beyond the state's borders to take their jobs.The DFL likes saying that businesses stay here because of the well-educated workforce. To a certain extent, that's true. There comes a point, though, when taxes force a businessman to consider taxation costs as the determining factor for where his business is located.
Another factor in all this is South Dakota. Specifically, Rapid City's Chamber of Commerce has an active recruitment program where they try enticing Minnesota companies to Rapid City. The Black Hills/Badlands/Rapid City area is scenic with lots of things to do. More importantly, employees don't pay state income taxes.
If the DFL keeps jacking up tax rates, I suspect that lots of people will find South Dakota more appealing with each tax increase. Here's Mr. Fulton's last argument:
Minnesota is viewed by many as an already-high-priced place to do business. It's more than a perception; it's a fact. I hear it from CEOs as they look at options for expanding companies and jobs. That's why it is imperative to keep property taxes competitive.
Posted Tuesday, April 10, 2007 3:30 AM
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House Republicans Tell Pelosi to Return; Finish Unfinished Business
Hooray for the GOP House leadership for firing off this letter to Nancy Pelosi telling her that she needs to reconvene the House so they can pass a clean supplemental appropriation bill for funding the troops in Iraq.
Dear Speaker Pelosi:I really like that opening. It lays out what's at stake in a firm, respectful way. It also puts the onus squarely on Ms. Pelosi's shoulders by telling the American people that Pelosi's Democrats didn't take their responsibility for funding the troops seriously.
We are writing to urge you to call the House back into session immediately so that Congress can finish its work on the emergency legislation to fund the Global War on Terrorism. This funding request has been pending since February 5, but your leadership team chose to leave town for more than two weeks rather than completing this bill. As a result, our troops have been put at risk.
We are especially troubled by the House's failure to appoint conferees. The Senate appointed conferees on March 29, moments after passing its bill, but the House never did so despite passing the bill a week earlier. Senate Majority Leader Harry Reid told the Senate that he hoped the House-Senate conference would begin on March 30. That hoped-for progress has been thwarted by your failure to act.This paragraph expands on the opening paragraph in the sense that they're saying that Ms. Pelosi didn't name conferees, which is the minimum threshold for getting the troops funded. Finally, there's this paragraph:
It should go without saying that our military leaders are in the best position to know the needs of our troops, and they have left no doubt that this funding is needed urgently. General Peter Schoomaker, United States Army Chief of Staff, has written that, "without approval of the supplemental funds in April, we will be forced to take increasingly draconian measures which will impact Army readiness and impose hardships on our Soldiers and their families."In other words, Secretary of State Pelosi and Joint Chief of Staff Chairman Murtha think that they know better than Gen. Petraeus and Gen. Schoomaker. That'd be laughable if it weren't such a serious matter.
Posted Tuesday, April 10, 2007 3:50 AM
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Emergency Bonding Bill?
I've chronicled the spending increases that the DFL wants to enact to show taxpayers just how 'generous' they are with someone else's money. This morning, I found a perfect illustration on their 'generosity' in this Bemidji Pioneer article.
Bonding: While Gov. Tim Pawlenty proposed a $71 million borrowing plan for public works projects, the House approved a $255 million bonding bill and the Senate topped that with a $306 million plan. The Legislature must reach a compromise plan before formal negotiations with Pawlenty can really get under way. Bonding bills in odd-numbered years traditionally pay for only urgent state construction or renovation projects.It's clear that the DFL is planning on stuffing a ton of 'wish list appropriations' into the emergency bonding bill, then scream about how Gov. Pawlenty doesn't care about the people who need emergency relief, like the flood victims in Browns Valley. The House bill is bad enough but the Senate really outdid themselves with their bill.
This is apparently what Speaker Kelliher considers being fiscally moderate. I think it's time that we sent her a dictionary so she knows the real world definition of moderation is. It's apparent that she either doesn't know the definition or she doesn't care about moderation.
Last week, Tony Sertich whined about Gov. Pawlenty's radio ads. Sertich said that Gov. Pawlenty should be talking with the legislature instead of playing politics. Here's the exact quote:
"Rather than having another political campaign over the airwaves, we should sit down and govern together," said House Majority Leader Tony Sertich, DFL-Chisholm.I asked then what I'm asking now: how can the two sides "govern together" when one side stuffs an emergency bonding bill with non-emergency appropriations to the point that the bill doesn't look anything like the original proposal? Isn't it time that Rep. Sertich & Sen. Clark stopped playing games with this bill? After all, real people are facing real crises.
We should expect more of these types of tricks from the DFL as we get closer to the end of the regular session. It's obvious that their goal is to appropriate a ton of extra money, then scream foul when Gov. Pawlenty does the responsible thing & vetoes their excessive spending.
We should also expect their media lemmings to provide them with plenty of cover, too. It's our job to call into local radio shows & write letters to the editor to expose the DFL's agenda as irresponsible. We should also emphasize the point that the DFL's tax increases to pay for these spending overreaches will kill job creation & the state economy.
Posted Tuesday, April 10, 2007 10:28 AM
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A "Cheap Political Stunt"???
That's Queen Pelosi's official reaction to the GOP's letter calling for the return to Washington to finish the work that the Pelosi House left without finishing. Here's the exact quote from the Queen's spokesman:
"Coming from the Republicans, who ran the 'do-nothing' Congress, this letter is a cheap political stunt," Pelosi spokesman Brendan Daly said.It's obvious that she's really on the defensive by this overreaction:
Mrs. Pelosi, (D-CA), called the letter "overblown rhetoric" and said a spending bill will reach President Bush before money is depleted for the wars in Iraq and Afghanistan. "Coming from the Republicans, who ran the 'do-nothing' Congress, this letter is a cheap political stunt," Pelosi spokesman Brendan Daly said. While she was in the minority party, Mrs. Pelosi frequently sent letters to House Speaker J. Dennis Hastert, (R-IL), calling for shortened congressional recesses.I have no doubt but that Pelosi whined alot for cheap political purposes. That's part of the political gamesmanship that comes with the turf in Washington. I don't think that the GOP's call to complete the work on an emergency appropriation bill to fund our troops fighting a war qualifies as political gamesmanship. Rather, I'd characterize the GOP's call for getting this work done as the adults telling the children that they need to finish their homework.
If the children don't finish their homework, then the teacher has to chastise them for not finishing their work.
Democrats cite a congressional report that says the Army can bridge funding gaps until July by using money from other military accounts. Republicans cite Pentagon officials who say the money starts to expire Sunday, the day before the House returns from its break. The Senate comes back from a one-week recess today.This is an easy question. Should I trust a congressional report or should I trust the Pentagon's people?
Mrs. Pelosi's spokesman said both chambers have worked on the bills during the recess, which he called a "district work period" for lawmakers to connect with constituents. "The House and Senate will soon pass a conference report giving the president every penny he requested for our troops, but it will also require accountability for the first time since the Iraq war began," he said.I know that representatives have used this time to "connect with constituents", which is a valuable thing in most circumstances. This doesn't fit into the "most circumstances" category because this funding is needed so our military can defeat the terrorists and insurgents in Iraq. Furthermore, it's impossible to iron out the differences between the House and Senate if the conference committee isn't meeting.
It's time for the children to get back to Washington to finish their work. Our soldiers can't live without it.
Posted Tuesday, April 10, 2007 11:00 AM
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Done Deal On Twins Stadium?
It appears so according to this article. Here's some of the initial details:
The landowners have agreed to the eminent domain process. A judicial panel will decide the price after both sides submit their arguments next month. County commissioner Mike Opat has been the county's lead negotiator for the ballpark site. He says there are still some details to be worked out, including an agreement with the Burlington Northern Santa Fe railroad to move some tracks that would run close to the new ballpark.That's good news for Twins fans. The only thing that I'm worried about is them building this new stadium without it being 'retractable ready'. Cleveland was scheduled to start the season with a 10 game homestand, only to see Mother Nature put the kibosh on that. They're now moving their middle series of that 'homestand' into Milwaukee's domed stadium. Building a stadium in the northern United States that isn't dome ready is foolishness.
Opat said the work to begin preparing the site for construction can probably begin within a few weeks.Now if the Twins were to beat the Yankees this week, I'll be a happy camper.
Posted Tuesday, April 10, 2007 12:16 PM
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Good Cop, Bad Cop???
The Pioneer Press has started a series about the legislative styles of the House & Senate leaders. Today's article is about Larry Pogemiller & Margaret Anderson-Kelliher. Here's what they said about Kelliher:
"Margaret, in particular, has done a very good job of treating people with respect," said Rep. Paul Gardner, a DFL freshman from Shoreview.Kelliher can afford to do "a very good job of treating people with respect" because she's got Tony Sertich to play the bad cop to her good cop. Sertich doesn't "treat people with respect." He's as obnoxious, ruthless & cold-blooded as Larry Pogemiller. Anyone who's followed Minnesota politics knows that being compared to Pogemiller in terms of personal characteristics isn't a compliment. Minnesota political veterans know that Pogemiller is the opposite of Minnesota Nice. Sertich is the polar opposite of Paul Wellstone.
Here's another 'Alice-in-Wonderland' type of statement:
The speaker and Majority Leader Tony Sertich also get credit for keeping House members focused on their three oft-sighted priorities: education, health care and property tax relief.They dropped health care long ago. Their version of property tax relief is a shell game & a scam. The only thing that they've stayed committed to is increasing funding for education. That's only to pay off their political allies for the campaign contributions they make. The DFL does a lousy job when it comes to looking out for people who aren't their political allies.
That's the "stick-to-the-basics" agenda House Democrats outlined before the November election. It brought them to power in the Minnesota House and is a mantra they have repeated since they took office.Speaker Kelliher needs a harsh dose of reality. Raising taxes by $900 million to pay for $543 million worth of property tax relief isn't relief. It's just another shell game. Genuine property tax relief is when you reduce property tax rates. Otherwise, this is just another DFL scheme to characterize their tax increase as a middle class tax relief.
But the priorities have to be funded.
For months, Kelliher and Sertich, DFL-Chisholm, avoided saying they planned to raise taxes to pay for their priorities. "We are very focused on working within the means that we have," Kelliher said early this year.
Then House Democrats produced a budget plan that raised the income tax rate on top earners, couples earning $400,000 a year and individuals earning $226,000 or more, from 7.85 percent to 9 percent.
That sent critics reeling.
"I would tell you that there are campaign promises that are not being kept. Maybe the spending side of the campaign promises are being kept, but the tax side, they are not keeping the campaign promises," said Rep. Steve Sviggum, R-Kenyon.
Kelliher said the tax increase is fiscally responsible and right. "It was pretty clear that to do significant and meaningful property tax relief, we had to have more revenue," Kelliher said. "You don't get something for nothing."
I've pointed out before that this isn't guaranteed property tax relief:
However, that relief will not come if money is not available to fund it.That's a quote from Ann Lenczewski. What this means is that the DFL's property tax relief vanishes in a single spending spree. That isn't property tax relief. That's tax increase legislation with a conditional property tax relief clause in it.There's a big difference between the two.
Under the House budget, the tax increases would help fund cuts in 2008 property taxes.The only thing that Rep. Marquart did a great job with was putting together a bill that's titled property tax relief that didn't guarantee providing property tax relief.
Rep. Paul Marquart, DFL-Dilworth, was nearly chipper late last month as he walked Kelliher through the House property tax relief proposal mostly funded with the new income tax. "The suburbs, the metro and the rural areas are all going to benefit," said Marquart, chairman of the House Property Tax Relief and Local Sales Tax committee.
"You've done a great job," Kelliher responded.
That's hardly praiseworthy from a taxpayer standpoint.
Posted Tuesday, April 10, 2007 5:59 PM
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