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DFL leaders hit the road to sell tax plan
Two days after passing an education bill with an income tax on the wealthiest Minnesotans Senate DFL leaders are traveling the state to promote the plan. Senate majority leader Larry Pogemiller of Minneapolis and assistant leader Tarryl Clark of St Cloud will are devoting the first two days of their Easter promoting their legislative agenda in Greater Minnesota. "Our goal is to be leading the country again," Sen Clark told a group of city and school leaders gathered in Mankato. "To be a real leader and to make sure that our kids and our grandkids can enjoy the same kind of state that we've been fortunate to live in." The Democrats viewed the tour as an opportunity to talk directly to the news media in smaller cities, who often aren't part of the daily fray at the Capitol. The event, at the Mankato Intergovernment Center, drew reporters from the local newspaper in Mankato and the city's TV station. "I think in this general area of the state you're going to see a 10 percent reduction in homeowner property taxes from the projected increases in local government aid," Sen Pogemiller told the group. "The era of double digit property tax increases is over." Targeting Wealthiest The education bill passed Saturday would boost school funding by $444 million, and give hefty lifts to colleges and early childhood education. It would be paid for with a new tax rate of 9.7 percent for anything earned above $250,000 for a couple filing jointly, or $141,250 for singles. The top rate currently is 7.85 percent. But rather than coming across in the media as an investment in schools and property tax relief, it was reduced to a "billion dollar tax hike" and the "highest tax rate in the nation." The DFL leaders cite a Minnesota Department of Revenue study that when all state and local taxes are added together, the wealthiest 10 percent pay only about 4 percent of their total income in taxes while middle income Minnesotans pay 12 percent. "So we think having everybody pay their fair share is a good thing," Senator Clark explained. "And right now, they're the ones that have gotten a chance to benefit." It was a point emphasized by Sen Kathy Sheran, a freshman senator who previously served as a city council member and mayor in Mankato. She said the idea of "soaking the rich" doesn't match the facts when it comes to the overall tax burden. "The main message I want to make about that is with this increase they'll still be paying less as a percent of their income than the middle class property, middle class income taxpayers." Scaring Away Business or Attracting It? An estimated 93,000 taxpayers would be subject to the Senate version of the tax hike, as opposed to roughly 50,000 who would be included in the House's proposed income tax. Either way Republicans have described the proposals as job killers that will "scare away" the persons who create new wealth and new jobs in the state. The Democrats counter that companies set up shop in Minnesota for the well-educated and healthy work force, the very assets their bills are striving to reinforce. As Sen Clark put it, "The reason why we think businesses come here and want to participate is the same reason other people move here, the great schools, strong quality of life, great parks, place to hunt and fish, the work force." "It's simply a myth that strategic investments in public infrastructure hurts your economy. It's the opposite," Pogemiller asserted. Sheran agreed, "It's just the opposite of the fearmongers who are raising some concern that everything's gonna collapse if we do this." Opposition from Within And while Sheran voted for the education bill Saturday, seven suburban DFL senators voted with the Republicans. "Since Tarryl and I took over the leadership positions in the Senate," Pogemiller explained, "We have never asked for a party line vote on any issue. We did not on these issues." It would Team Pogey hasn't finished marketing the plan to DFL caucus. "I think many of us would like to see a solution where it can be a little bit less," Clark conceded. "And they may be helping us get there." But Pogemiller cautioned that diluting the plan could also jeopardize the fiscal accountability he's trying to achieve by building up the reserves with the so-called "rainy day savings bill" that passed the Senate last Thursday. He's hoping to convince average Minnesotans that a tax on the wealthy is a good trade-off in exchange for property tax reliefe and making strategic investments in the future. "Our parents made a generational decision to invest in Minnesota's future," Pogemiller remarked. "There's too much of pulling up the ladder behind us. Right now and we need to step up, generationally, and do the right thing and invest." Governor not buying it But the one Minnesotan who remains unconvinced is Governor Tim Pawlenty. He continues to argue that the state's budget will grow nine percent over the next two years without any new taxes. He has vowed repeatedly to veto any bill that relies on new taxes. And the Senate education bill passed 35-29, far short of a the 45 votes or two-thirds majority needed for an override. But Pogemiller told KARE 11 News he believes the veto threats are simply posturing by the Governor. "I really don't anticipate that the Governor's going to be vetoing all these bills. That would be an irrational thing to do." He said he thinks the Governor will embrace the opportunity to make history this session. "But if he decides to stay on the sidelines and just be a negative voice the House and the Senate will do the best we can without him." The Governor has framed it the other way around, saying that lawmakers have by and large ignored his own legislative goals, and have invited a veto. "They're choosing to ignore me," Pawlenty said last week, "And will pay the consequences by not getting their bills signed." In addition to Mankato, the DFL leaders made stopes Monday in Winona, Rochester and Willmar. They plan to stop Tuesday in Moorhead, Bemidgi and Duluth.
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