June 17-22, 2014
Jun 17 00:28 Medtronic fleeing high federal, state taxes Jun 17 16:50 Hillary: Hypocrite 1-percenter Jun 18 10:42 Gov. Dayton: Medtronic leaving is a good deal Jun 18 14:48 Is Hillary helping Biden's campaign? Jun 19 13:58 Sabato: Westrom closing in on Peterson Jun 19 20:11 What will Mark Dayton say this time? Jun 20 02:40 Gov. Dayton's MNsure mistake Jun 22 03:17 Highlighting the DFL's misplaced priorities Jun 22 22:38 Onions for Franken
Prior Months: Jan Feb Mar Apr May
Prior Years: 2006 2007 2008 2009 2010 2011 2012 2013
Medtronic fleeing high federal, state taxes
According to this article , medical device manufacturer Medtronic is leaving Minnesota's high state taxes. In fact, it's leaving the federal government's high corporate rates, too:
Medtronic Inc. (MDT), the globe-spanning medical device maker founded in a Minneapolis garage in 1949, is poised to become the biggest company yet to escape the U.S. tax system by shifting its incorporation abroad.
Medtronic said yesterday it plans to take a legal address in tax-friendly Ireland as part of a $42.9 billion takeover of Covidien Plc. (COV) Although Covidien is run from Mansfield, Massachusetts, it's been incorporated in Ireland since 2009.
That's just the tip of the proverbial iceberg. Here's more:
Minneapolis-based Medtronic joins some 44 American companies that have reincorporated abroad or struck plans to do so, including 14 in a recent wave of moves that began in 2012. Earlier this year, Pfizer Inc., the largest U.S. drugmaker, briefly proposed taking a U.K. address, a move that might have cut its tax bills by as much as $1 billion a year.
The truth is that Medtronic is running from Minnesota's high taxes just like it's running from high federal tax rates on corporations. While it's true that Medtronic isn't shipping its manufacturing operations overseas yet, that's just an eventuality.
More companies are looking at this option:
Shareholders are pressing drugstore chain Walgreen Co. to get a Swiss address. Without a change in law, a congressional panel estimated last month, future deals will cost the U.S. $19.5 billion in tax revenue over the next 10 years.
President Obama and Gov. Dayton apparently haven't learned that capital and labor are mobile. At this point, it isn't likely that they'll ever learn. Apparently, they haven't figured out that companies are in business to make profits for their shareholders. They aren't in business to support out-of-government spending, which is what President Obama and Gov. Dayton think.
If Gov. Dayton is re-elected and he keeps Minnesota's corporate tax rate high, more companies will leave. That's before businesses worry about whether Sen. Bakk will bring back the B2B sales taxes that were just repealed.
It's time Democrats, both in Minnesota and on the federal level, understood that high marginal tax rates matter. It's time they noticed that companies are leaving and, with them, good paying jobs for Americans.
Posted Tuesday, June 17, 2014 12:28 AM
Comment 1 by Rex Newman at 18-Jun-14 08:03 AM
This should be a millstone to hang on Franken, Dayton and any other DFL incumbent. The cause and effect could not be more obvious. Why am I so equally convinced the GOP will fumble this one away on the goal line?
Response 1.1 by Gary Gross at 18-Jun-14 10:24 AM
You're convinced, Rex, because you're thinking today's messaging is as terrible as it was years ago. That isn't reality. The messaging has dramatically improved.
Comment 2 by walter hanson at 18-Jun-14 10:49 PM
Gary:
I believe you forgot to mention that now that Medtronic is no longer a US company they can avoid the Obamacare taxes on the medical devices that they sell.
Walter Hanson
Minneapolis, MN
Comment 3 by walter hanson at 20-Jun-14 02:10 PM
Sean:
Technically it does since it is an excise tax based on the sales price. Just by moving away from the US if other costs are down Medtronic will be in a position to charge a lower sales price and make more money.
And if you want to imply hey it doesn't hurt anybody's sales why are US makers of medical devices seeming to leave the states while foreign manufacturers aren't rushing into the US? It's because the tax is hurting their sales.
So yes the Obamacare tax helped drive them to leave Minnesota.
Walter Hanson
Minneapolis, MN
Comment 4 by Gary Gross at 20-Jun-14 03:26 PM
Sean, if you want to argue that Gov. Dayton's tax increases weren't the sole factor in driving Medtronic, I'd agree with that.
I won't agree that it wasn't a factor. Gov. Dayton & the DFL are beholden to their special interest allies, which necessitates massive spending increases. That, in turn, necessitates massive tax increases.
Why would Medtronic look at Minnesota and think that the tax regime won't become more burdensome in the near future?
Comment 5 by Sean at 22-Jun-14 08:26 PM
What I was saying is that Walter was incorrect. The medical device sales tax still applies whether or not Medtronic is HQ'd here or not.
I think the federal tax issues are paramount as it relates to this deal, not state taxes.
Comment 6 by Gary Gross at 22-Jun-14 10:46 PM
Sean, I disagree with that last part because the DFL's penchant for spending keeps Minnesota's tax system in a perpetual state of volatility.
Any company facing a choice between volatility and stability will pick stability 100% of the time.
Comment 7 by Gary Gross at 23-Jun-14 10:08 AM
Dave Camp & Paul Ryan have led on that issue. Just because you aren't paying attention doesn't mean it isn't happening.
Comment 8 by walter hanson at 25-Jun-14 02:32 PM
Sean:
The point I'm trying to make and which you want to ignore is because Medtronic is now moving away from the state and to another country that will help lower the costs of their product.
Lets say for example because they are now in Ireland and they will need to bill $9,000 for a product which used to cost $10,000 to make the same after tax profit. The extra cost of the Obamacare tax is being partially avoided because they are now based in Ireland and can price based on that.
In short based in Minnesota it's a higher price. The point I was trying to make.
Walter Hanson
Minneapolis, MN
Comment 9 by Sean at 26-Jun-14 09:08 AM
The bigger issue for Medtronic is not the lower cost (because their effective tax rates will be similar in both countries), but the ability to more effectively move capital between countries without encountering additional taxes. It may make sense for the U.S. to move to hybrid territorial model like many other countries, but that is a complex discussion.
To Gary's point: Dave Camp's plan went nowhere because of a lack of support in the GOP Caucus. Paul Ryan has engaged in much discussion and hand-waving, but has refused to identify a concrete set of credits/deductions/handouts that he would take out of the tax code.
Hillary: Hypocrite 1-percenter
This article proves that Hillary Clinton is a hypocrite:
Bill and Hillary Clinton have long supported an estate tax to prevent the U.S. from being dominated by inherited wealth. That doesn't mean they want to pay it.
To reduce the tax pinch, the Clintons are using financial planning strategies befitting the top 1 percent of U.S. households in wealth. These moves, common among multimillionaires, will help shield some of their estate from the tax that now tops out at 40 percent of assets upon death.
The Clintons created residence trusts in 2010 and shifted ownership of their New York house into them in 2011, according to federal financial disclosures and local property records.
The Schweizer Principle ( Do as I say, not as I do ) definitely applies to the Clintons. For all their talk about "the rich" paying their fair share, the Clintons certainly have tried to not play by the rules they expect others to play by:
Among the tax advantages of such trusts is that any appreciation in the house's value can happen outside their taxable estate. The move could save the Clintons hundreds of thousands of dollars in estate taxes, said David Scott Sloan, a partner at Holland & Knight LLP in Boston.
'The goal is really be thoughtful and try to build up the nontaxable estate, and that's really what this is,' Sloan said. 'You're creating things that are going to be on the nontaxable side of the balance sheet when they die.'
What this apparently means is that the Clintons think income, not wealth, should be taxed. That's plain wrong. A significant portion of the individuals and married couples that pay the top marginal tax rate are small businesses. Most of that income is re-invested in their business, including creating jobs.
By comparison, the things that the Clintons are sheltering aren't invested in growing a business. When the Clintons put their homes in trusts, all they're doing is saving money on their tax bill.
For the record, I support people saving money on their tax bill. I don't support people who say that "the rich" aren't paying their fair share at a Democratic fundraiser, then hurry to their tax advisor to see how much of their wealth they can hide from the IRS.
Further, I support the elimination of the estate tax. That money was taxed once already. The IRS shouldn't get another bite at that apple. PERIOD.
The Clintons have been deceitful their entire time in public life. They've talked a good game about how "the rich" haven't paid their fair share. It isn't surprising that they're trying to have things both ways now that they're part of the wealthiest 1-percent.
Posted Tuesday, June 17, 2014 4:50 PM
No comments.
Gov. Dayton: Medtronic leaving is a good deal
It's stunning what Gov. Dayton said about Medtronic moving their headquarters to Ireland:
Gov. Mark Dayton sees good news in Medtronic's $43 billion deal to buy Irish medical device maker, Covidien.
"As I look at the project as governor of Minnesota, this is a good deal for the people of our state," the governor said on Monday.
Dayton said he was personally assured by Medtronic's CEO Omar Ishrak that, while the company would move its headquarters to Ireland, it would keep its operational headquarters in Minnesota. The result would mean that not only would the company keep its existing 8,000 employees in the state, it would also add an additional 1,000 Minnesota workers in the coming years.
Years ago, Northwest Airlines struck a deal with the state. One of the things that pushed the deal through was the number of jobs Northwest would create in Minnesota. Though the deal was signed into law, the reality is that the jobs were never created.
In fact, when Delta bought Northwest, they moved Northwest's headquarters to Atlanta.
Why would a skeptical person believe that Medtronic will create those 1,000 jobs, especially in light of this statement?
Opponents of the income tax hikes the DFL governor pushed have laid blame on Dayton for the company's decision to move its headquarters to Ireland. Dayton said that blame is ill-founded.
"Minnesota taxes were not an issue in their decision, Minnesota taxes (on Medtronic) will remain essentially the same," he said.
With the DFL on a major spending binge, it's only a matter of time before the DFL attempts to raise taxes again. There's no certainty that Minnesota's corporate tax rate will remain essentially the same. I'm not supporting Scott Honour but he's right with this statement:
But Scott Honour, a former venture capitalist also running to unseat Dayton, said the governor is the one who doesn't understand what's going on.
"Governor Dayton is dangerously out of touch if he thinks it's 'tremendous news' when one of Minnesota's flagship companies moves its headquarters to another country. This is a slap across the face telling Minnesota and America to wake up," Honour said on Monday. "Our tax and regulatory policies are chasing away Minnesota's best companies."
It's apparent that Gov. Dayton doesn't know how to build a flourishing economy statewide. The question Minnesotans, especially the Rangers, have to ask themselves is whether they're better off now than they were 4 years ago. Simply put, Rangers definitely aren't.
This isn't the first flagship businesses that's left the state during Gov. Dayton's time in office. I wrote this post about Nash Finch and Cargill leaving Minnesota.
This exodus started on Gov. Dayton's watch and while the DFL controlled the legislature. This isn't coincidental. It's happening because Gov. Dayton and the DFL majorities in legislature were increasing spending and raising taxes. Those things have told businesses that the DFL saw them as ATMs for expanding government, not as engines to build a prosperous Minnesota.
The frightening thing about Gov. Dayton's statement is that it I can't tell if he's serious of if he's just lying to cover his butt.
Posted Wednesday, June 18, 2014 10:42 AM
Comment 1 by J. Ewing at 18-Jun-14 11:07 AM
How about a third possibility? Perhaps Dayton has no idea of what he is talking about? Like most politicians who spent too much time in the fever swamps and opiate dens, he has lost all connection with reality. I know we have to report and refute these insane babblings, but we don't need to speculate for the underlying reason. It doesn't matter WHY he is damaging the economy, does it?
Comment 2 by walter hanson at 18-Jun-14 10:47 PM
J:
We already know that Dayton has no idea what he is talking about. The problem is we have to demonstrate this to the voters so they will kick him out of office.
Walter Hanson
Minneapolis, MN
Comment 3 by Rich at 01-Jul-14 11:04 AM
To be a Democrat, one has to have a sense of whimsy, which allows individuals to surmise the present, with all it's problems, is somehow less important than the vision the soft in the head dfl has for world. Plans which include hiring more lackeys for another wasteful government agency we don't need! I wonder how a federal employee sleeps at night knowing their exorbitant union wages and their pensions are draining the life out of the economy, I always thought the right was greedy until I see what unfettered control the great dictator can exercise for his own socialist agenda, and the integrity-challenged media just can't get the brown off their noses, but I digress. Mr. Dayton must have severe brain damage to think bonding a billion dollars is a good idea when the same year we have a $900,000,000 overage? Really? Light rail? Thanks again, screw up the already poorly designed roads for an unused wasteful train system? Awesome job! After the House and Senate pass a comprehensive medical marijuana bill, the imbecile Dayton doesn't like it so he carves it up into a truly dangerous piece of legislation that keeps the power out of the hands of the people who need it, and places it in the hands of more government/big business partnerships which benefit no one! Minnesotans needs to stop electing morons/comedians, same thing! Someone who has passed economics 101 maybe? We will continue to slide towards our own demise if we keep voting for more free stuff; nothing is free, and not for the freedom to seize our own destiny, or we risk losing what rights we have left. When the government gets to tell us what we can have today. Does Scott Walker have a brother?
Is Hillary helping Biden's campaign?
Even before Jonathan Last's newsletter , people knew that Hillary wasn't helping herself. Last's newsletter just highlights Hillary's missteps:
By just about every account, her book is uninteresting and unreflective, a carefully contrived piece of positioning. Yet instead of owning that, she insisted at an event that she was " done with being really careful about what to say ." And that was before uttering inanities about how " the American political system is the most difficult, even brutal, in the world ." (She might look at Egypt, for instance. Or Venezuela. Or China. Or Greece. Or Russia. Or any country where instability and chaos is the norm and the children of former presidents aren't given $600,000 sinecures from independent_"independent"?_media conglomerates.)
I wrote this article last night to highlight Hillary's unforced mistakes from her interview with Bret Baier and Greta van Susteren. Here's the first of Hillary's unforced errors:
Ms. van Susteren asked Hillary if she would've traded the Taliban 5 for Sgt. Bowe Bergdahl. Secretary Clinton replied that she had worked on a different deal to free Sgt. Bergdahl. When Ms. van Susteren said that people were shocked that Hillary said the Taliban 5 didn't pose a threat to Americans, Hillary replied that "As long as they're in Qatar, they don't post a threat to Americans." Van Susteren replied, saying "Well, bin Laden was never in the United States."
Hillary knew this question was coming. What's interesting is that Hillary used the Obama administration's chanting points rather than distance herself from that disaster. It's one thing to be loyal. It's another to walk the plank for the Obama administration on one of their biggest, and most recent, foreign policy disasters.
If there's anything we've learned about the Clintons throughout the years, it's that they're loyal to themselves. They aren't even loyal to each other. Hillary isn't stupid. That begs this question: Why would Hillary stay loyal to the Democrats' chanting points? The only explanation that makes sense is that she's buttering up Obama's base supporters.
The anti-war doves are President Obama's political base love the thought of closing Gitmo. Was Hillary making a play for President Obama's base?
Whatever the reason, the truth is that she's helping the Biden campaign through her book tour. If she wants to be president, she needs to stop granting interviews to serious news organizations because she's doing terribly in those interviews.
Posted Wednesday, June 18, 2014 2:48 PM
Comment 1 by walter hanson at 18-Jun-14 10:40 PM
Gary:
She doesn't have much choice. She was defeated for the democrat nomination in part because she hadn't portrayed herself as anti Iraq war and anti Gitmo enough. As one radio talk show host put she's trying to position herself so nobody like Elizabeth Warren can be to her left.
That might work for the nomination, but it won't win her the general election (even though the nonstupid is that to be elected president 2016 all she has to do is win the Democrat nomination)
Walter Hanson
Minneapolis, MN
Walter Hanson
Minneapolis, MN
Comment 2 by walter hanson at 18-Jun-14 10:42 PM
Gary:
On another post I put I wanted to contact you about a very interesting story which I don't want to describe on a post (in part because it's very detail). I believe you can get my email to email or give me a different method to contact you.
Walter Hanson
Minneapolis, MN
Sabato: Westrom closing in on Peterson
Larry Sabato's latest predictions for House races have changed. One of the "tweaks" to Sabato's predictions is about the Torrey Westrom-Collin Peterson race:
Rep. Collin Peterson (D, MN-7) - Likely Democratic to Leans Democratic: One of the more curious ad reservations in the DCCC's $43.5 million, 36-district ad buy announced last month was a hefty $1.5 million to defend Peterson, a 12-term incumbent whose district gave President Obama just 44% in 2012 but who has not had a truly tough race in two decades. Republicans have trumpeted the candidacy of Torrey Westrom (R)...and are vowing to spend heavily against Peterson: They backed up those words by announcing a $3.2 million ad reservation in the Minneapolis/St Paul market, presumably to be used against Peterson and Rep. Rick Nolan (D, MN-8). The likeliest outcome here is that Peterson holds on for another term and then retires in 2016 or soon thereafter, giving the Republicans a much easier shot at a pickup. But this is a race where both sides appear fully engaged; add that to the district's Red tint, and it merits a more competitive ratings.
Peterson hasn't faced a top-tier candidate in twenty years. Torrey Westrom is definitely a top-tier candidate. In this article , I wrote that Torrey Westrom is Collin Peterson's worst nightmare:
Sen. Westrom's announcement got the Peterson campaign's undivided attention for a plethora of reasons. First, Sen. Westrom is a fantastic, tireless campaigner. That alone sent the signal to Peterson that he'd better prepare for the toughest campaign of his life.
Should Peterson accept the challenge, Sen. Westrom will be the best opponent he's faced since he defeated Arlan Stangeland, the incumbent at the time, in 1990. In fact, it isn't guaranteed that Peterson will accept Sen. Westrom's challenge. Peterson might simply retire rather than get fired by voters.
Second, Sen. Westrom has a fascinating political personality. Colleagues have said that people naturally warm up in his presence. (That's likely why he's a great campaigner.)
I haven't seen any polling on this race. Still, it's reasonable to think that the NRCC thinks this race is competitive. Prof. Sabato's Crystal Ball highlights the race in this graphic:
There are several political lifetimes between now and Election Day so anything can happen. Peterson will campaign hard and he's got incumbency on his side. Still, he'll have to fight every day. He'll have his record scrutinized like it's never been scrutinized before, too.
This is one of the high-profile races in Minnesota that I'll be keeping an eye one. While this race isn't a toss-up at this point, that doesn't mean it won't get there before the end of summer.
Posted Thursday, June 19, 2014 1:58 PM
Comment 1 by Gretchen Leisen at 19-Jun-14 04:31 PM
Torrey Westrom was given an opportunity to appear before the delegates at the MN State GOP convention. He gave a powerful speech and impressed all of us. His family was with him on stage and he received a huge response of approval from the crowd when he said, "Speak softly and carry a big stick", while bring forth his long white cane (which until that time was hidden behind his large frame.) Torrey is legally blind, and his presentation was awesome. His delivery was impeccable.
I sent him a donation just last week.
What will Mark Dayton say this time?
Now that Advanced Auto Parts is shutting its Bloomington, MN office , the big question is simple. What will Gov. Dayton say about this company taking more high-paying jobs out of Minnesota? Here's what's being reported:
Advance Auto Parts Inc. announced Thursday that it will shut its corporate office in Bloomington in September 2015 as part of a company reorganization following two key acquisitions. The decision means that Minnesota will lose about 100 jobs, including the CEO and CFO positions.
This commenter got it exactly right:
duck2013 So the second corporate headquarters leaves Minnesota in only one week? You Democrats better raise taxes quick! There's people working and earning money and it's not fair! lol
When Medtronic left Minnesota, Gov. Dayton said "As I look at the project as governor of Minnesota, this is a good deal for the people of our state." What will Gov. Dayton say this time about AAP shutting its Bloomington office? We don't have to wonder what Jeff Johnson thinks on the issue:
'Mark Dayton is presiding over an exodus of businesses, and declares it 'good' for Minnesota when they leave,' said Jeff Johnson, Republican endorsed candidate for governor.
'Minnesota is replacing its welcome signs at the border with ones saying 'closed for business.' It is never a good thing to see jobs fleeing the state, no matter what Governor Dayton says. We need to stop the bleeding, and get this economy healthy again,' Johnson concluded. 'When I am governor, I will reform taxes and regulations to ensure that Minnesota has one of the best business climates in the world,' Johnson concluded.
Apparently, Gov. Dayton won't hesitate in telling Minnesotans that losing high-paying Medtronics to Ireland is being a good deal. That doesn't change the fact that high-paying jobs are leaving Minnesota. Gov. Dayton's happy talk doesn't change the fact that Minnesota is losing great companies to other states and other nations.
The capital flight that's happened since last fall is both astonishing and frightening. It's frightening because AAP is just the latest company to leave Minnesota. I wrote this post to highlight the fact that Nash Finch and Cargill were leaving Minnesota for other states. If Gov. Dayton and the DFL legislature want to run on the verified fact that major corporations are leaving Minnesota, that's their choice.
That isn't what they'll do but it's something Republicans should highlight every time they're campaigning. Minnesotans might or might not care about tax increases, depending on whether they're affected or not. Minnesotans, though, will snap to attention when they hear that high-paying jobs are leaving Minnesota for Ireland, Michigan and North Carolina.
Minnesota needs a new financial direction. We can't keep raising taxes or threatening to raise taxes and expect companies to stay in Minnesota. Advanced Auto Parts, Cargill, Medtronic and Nash Finch are proof that companies will leave if the taxes are too high.
Posted Thursday, June 19, 2014 8:11 PM
No comments.
Gov. Dayton's MNsure mistake
Gov. Dayton recently said that MNsure "has been tremendously successful", something he might regret saying in light of Deloitte's executive summary . Here's the key part of Deloitte's executive summary:
A high level roadmap was created to outline the major activities, key dependencies, critical milestones and success criteria/assumptions for the State to consider in closing as many of these 41 gaps as possible by November, 2014. It should be noted that the roadmap does not imply that all 41 levels of functionality can be achieved by systemic changes but provides a framework for the State can manage the activities needed and the timeframes that must be met in order to deliver the functionality or resort to contingent options.
That's grim news but the AP's article isn't great news for Gov. Dayton:
either:
"I wish we could tell you today that it's all on track, it's all going to be delivered systematically by November 15th. However, from experience, I think it would be poor of us to start planning that all of this would be delivered systematically. There will be a heavy reliance on manual intervention," Keane said.
That's a polite way of saying that the website won't be working properly when open enrollment starts this November. Deloitte's informed opinion is that they'd better have additional staff on hand to manually enroll people. As in additional staff to fill out the applications by hand.
That's disgraceful. The Dayton administration spent the $160,000,000 it got from the federal government on a website that won't be functional the second year it's required to be operational. It's bad enough that the website didn't work last October when it was required by law to be operational. The fact that it isn't functional a year after it's supposed to be running is something only a government could do.
'MnSure is a poster child of Mark Dayton's incompetence and inability to govern. After one year the Dayton administration can't even build a working web site. Minnesotans deserve leadership that works for them,' said Jeff Johnson.
'Minnesotans need effective, efficient government - not government programs that fail to work and leave people worse off. When I am elected I will petition the federal government for a waiver, so Minnesota can show the rest of the country what a world class health care system really looks like,' Johnson concluded.
When $160,000,000 is spent on a website, Minnesotans have a right to expect that they can fill out their application online in one sitting. They shouldn't have to worry whether the website will crash when they're almost finished filling out their application.
Further, they shouldn't have to deal with someone manually filling out the 23-page application. They certainly shouldn't be told that they'd qualified for premium support initially, then be told that they don't qualify for the premium support because the software malfunctioned.
Gov. Dayton appointed the people who were to oversee the implementation of the software. Based on what's happening, it's safe to say it's a disaster. Gov. Dayton had the chutzpah to suggest that MNsure was a success:
That's chutzpah! The people got signed up because Scott Leitz finally hired tons of staffers who filled out the people's applications manually. That isn't a sign of success. That's proof of failure. The Dayton administration spent $160,000,000 on a website that still isn't functioning. People got signed up was because MNsure staffers filled out tens of thousands of applications manually.
In the private sector, that team of software analysts would've been terminated immediately. Their reputations would be ruined. The CEO would get sent packing if the project was high profile enough.
This November, we'll have the opportunity to fire that CEO. It's time we fired Gov. Dayton. We can't stand 4 more years of his incompetence.
Posted Friday, June 20, 2014 2:40 AM
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Highlighting the DFL's misplaced priorities
Tim Pugmire's article on the Senate Office Building highlights the DFL's misplaced priorities and the DFL's campaign year spin:
A recent KSTP poll found the public disapproval of the building at 68 percent. The four Republicans trying to unseat Dayton are making it a campaign issue, and so are their allies. The group Americans for Prosperity highlighted the issue in a new radio ad slamming Dayton.
"Let's not forget that he spent $90 million for a brand new office building for state Senators: and new offices for himself too," an announcer says in the ad. "So, Mark Dayton is building places for politicians while we struggle to make ends meet."
Here's House Majority Leader Erin Murphy's spin on the DFL's disaster:
"It's not coming up for Minnesotans. It's not coming up as I'm talking to our members, and they're out door knocking already," said Murphy, DFL-St. Paul. "So, I understand that the Republicans think it's an issue that they can use to drive division, and they will spend their time talking about that. 'We're going to spend our time talking about the future of Minnesota."
That's what's known as whistling past the graveyard. Rep. Murphy wishes this wasn't an issue. Unfortunately for her and the DFL, wishing won't make it so. It's an issue because it's another instance where the legislature ignored the will of the people.
The DFL can spin this all it wants. The numbers tell the tale. People understand that it's wrong to spend $90,000,000 on a building that'll be used 3-5 months a year.
This issue ties into another issue that'll hurt the DFL, which is that they increased spending by $6,000,000,000 this biennium over the 2012-13 biennium. It's right for Minnesotans to ask what they got for that spending. The answer is simple.
They didn't get much. There's still a mega-sized achievement gap in K-12 education. Incompetence is the rule, not the exception, in the MnSCU system. Iconic companies are leaving Minnesota . MNsure is still a mess. MNsure didn't work when it launched. What's worse is that it won't be fixed this fall , either.
In short, the DFL spent money foolishly and in record amounts. What's worse is that the DFL specialized in growing incompetence, not prosperity. As a result, Minnesotans paid higher taxes without getting a benefit.
As such, the Senate Office Building is the perfect symbol of what happens when the DFL controls the levers of the state government.
Posted Sunday, June 22, 2014 3:17 AM
Comment 1 by walter hanson at 22-Jun-14 01:27 PM
Gary:
Lets not forget that over the next couple of months you're probably going to be seeing monthly reports that the state has taken in less than they expected. If that number is just $100 million in any month the Republican can say we're in a position to have to cut education, health care, roads, etc because we have already spent $90 million on this office building that wasn't needed.
Walter Hanson
Minneapolis, MN
Onions for Franken
Bill Hanna, the editor for the Mesabi Daily News, is one of the most fair-minded people I've found in media these days. The thing that sets him apart is that he consistently sides with the people who read his newspaper. That sets him apart, in my opinion.
Each week, the MDN awards verbal orchids to people who did the right thing and onions to those who didn't. This week, Hanna 'awarded' some onions to Sen. Franken for voting against the Keystone XL Pipeline project:
Onions: To Al Franken for voting 'NO' to approving the Keystone XL Pipeline. The vote came in the Senate Energy & Natural Resources Committee meeting. The measure passed 12-10 with Franken voting against. It just goes to show how out of touch Franken is with people in his state, especially those in rural areas and small towns where the cost of gasoline and fuel oil are killing people in the pocketbook.
Sen. Franken is doing everything possible to not say anything to upset Iron Rangers on the PolyMet mining project issue. In his acceptance speech at the DFL State Convention in Duluth, Sen. Franken spoke for 26:39. He didn't mention mining or the environment a single time during that speech.
Speaking in the shadow of the Iron Range, Sen. Franken didn't utter a peep about mining. That's just the tip of the proverbial iceberg, though. The issues page for Sen. Franken's campaign website doesn't talk about the environment or mining.
Clearly, though, Sen. Franken still supports the environmental activists. Sen. Franken's vote against the Keystone XL Pipeline project is proof of that. Approving the Keystone XL Pipeline has bipartisan support. Sen. Franken sided with the environmental activists.
That's disgusting because Sen. Franken's vote hurts people in rural Minnesota through higher gas prices. With the median household income, aka MHI, in Eveleth being a paltry $35,500, every dollar counts. Minnesota's MHI is $59,126. That's a difference of $23,626. That's a difference of 40%.
Theoretically, US senators serve the entire state. In Minnesota, that isn't reality. Sen. Franken and Sen. Klobuchar essentially represent the Twin Cities and Duluth while periodically representing St. Cloud and Rochester. Based on their actions, the rest of Minnesota might as well be located in North Dakota.
For someone who supposedly supports "working families" throughout the state, Sen. Franken doesn't have much proof of supporting the industries that employ union workers. That isn't surprising because Sen. Franken's support of actual miners is theoretical. It isn't actual. That's because Sen. Franken supports the environmental activists' agenda, not the miners' agenda.
Posted Sunday, June 22, 2014 10:38 PM
No comments.
