Some wealthy Minnesotans offer to pay more taxes

Several well-off Minnesotans who believe more tax money should be pumped into public initiatives said the state can start with them.

More than 200 wealthy Minnesotans signed a full-page ad appearing Thursday in the Star Tribune asking the state to raise $2 billion for various initiatives by increasing the state's tax burden for high-salary earners.

"We need to invest more in our future," said Joel Kramer, former publisher of the Star Tribune and founder of the think tank Growth and Justice, which organized the "Invest for Real Prosperity" fiscal strategy. ?A penny on the dollar raises two-billion dollars,? Kramer said, ?The way we would do it is people making $300,000 or more would pay the two cents on the dollar and the rest would just pay one cent.?

The new money should be used to improve educational opportunities, provide affordable health care and fund transportation needs, Kramer said.

Gov. Tim Pawlenty scoffed at the proposal after a news conference Thursday. The GOP governor said Minnesota is already a high-tax state.

Instead of paying higher taxes, he encouraged the wealthy residents to write large checks -- $250,000 to $2 million -- to the state, and promised to recognize them with a public photo opportunity. He even rattled off the Department of Finance's address.

"We'll welcome them to the state Capitol and receive their check and we'll blow it up and we'll take a picture with them and even maybe give them a certificate of good citizenship," he said.

Kramer said making a donation doesn?t do anything to solve the larger issues Minnesota has right now and that this tax plan is a real solution.

Jim Pohlad of Marquette Financial Company, Richard McFarland, retired chief executive of Dain Rauscher, and Lee Lynch, former chief executive of Carmichael Lynch, were also key contributors to the proposal.

State taxes for anyone making less than $45,000 would not increase and the rates would vary for everyone in between. Kramer said he hopes the ad will create public interest and discussion, perhaps leading to legislative action.

He also acknowledged that if the tax increase was approved, it would take "some faith in government" to trust that the money would be appropriated according to the group's requests.

By Jana Shortal, KARE 11 News

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