Dean Johnson: Despite its claims, state GOP has increased tax burden on middle class

06/06/2006

by Senator Dean Johnson
June 6, 2006

An equitable tax system would benefit everyone, not just those in the top income tax bracket. - Dean Johnson

Gov. Tim Pawlenty and House Speaker Steve Sviggum have made a great show of saying they haven’t been raising taxes, but the truth is they have raised property taxes, fees, and tuition in our colleges and universities. Billions of dollars in the last few years are unfairly pressing the tax burden onto the middle class in our society.
Make no mistake: Pawlenty, Sviggum, and all state Republicans have raised taxes by billions of dollars, and they’ve made the conscious decision to do it in the least fair way possible.

Sviggum is quick to criticize proposals to make the tax system fair. He conveniently forgets to talk about the things the Senate DFL has done to decrease taxes on the middle class, like fixing the Alternative Minimum Tax and eliminating the marriage penalty.

The Senate proposed making the wealthiest in the state pay their fair share in order to cut taxes on the middle class, who are the real victims of his insincere policies.

Under Republican policies, property taxes have increased by $2 billion in just three years, and next year they are expected to rise another 11 percent statewide. The governor and the House GOP have cut aid to cities and classrooms, and the only solution for local governments is to raise revenue from property taxes.

Fiscal mismanagement caused the problem but the only solution that they offer is to blame local units of government for rising property taxes.

The Senate’s Property Tax Relief proposal would have provided real, permanent property tax relief, not election-year gimmicks.

With roughly $60 million per year in education funding and $60 million per year in funding for local services, the package would have bought down property tax hikes caused by Pawlenty’s cuts. The bill would have taken the pressure off property taxes, restoring the balance between state and local funding for education, public safety and other vital services.

It’s unfortunate that the governor and the House blocked our attempt to provide permanent property tax relief, opting instead to support an election-year gimmick check that only really would have benefited their rich contributors.

The governor and the House need to get the message from citizens that long-term property tax relief is needed in our state; it will directly benefit seniors on fixed incomes and help protect the middle class from being unfairly targeted by the Republicans.

The governor and speaker were successful in raising fees by $1.4 billion.

One of the more onerous fees is the “granny tax,” a $2,800-per-year fee tacked onto private-payer nursing home residents. Many of these taxes, disguised as fees like the $400 million cigarette tax, are not dedicated to pay for specific services; instead they are going into the state’s general fund.

Finally, more than $1 billion in tuition increases at colleges and universities have made it more difficult for students to get the higher education they need to compete in our global economy.

With tuition increasing 11 and 12 percent the last two years, students can’t afford college and parents can’t afford to help their children achieve their goal of a better life. Tuition increases are among the worst hidden taxes, as the cost of education prohibits long-term economic growth.

The Senate DFL solutions for these unfair shifts have been to make our tax system more equitable. Pawlenty and the Republicans are following President Bush’s lead and cutting taxes and protecting loopholes for the wealthy, while making the households struggling to make ends meet in Minnesota pay for those tax breaks.

The Senate DFL is dedicated to moving past partisan bickering and finger-pointing and helping everyday citizens get relief from the crushing weight of property tax hikes, fees, hidden taxes, and tuition increases. However, before we, as a state, can move on, we need the Republicans to tell the whole story.

The governor and speaker must be honest about the burden they’ve shifted and why they advocate policies that benefit a few Minnesotans while ignoring the rest of the state. An equitable tax system benefits everyone, not just the few in the top income tax bracket.

Dean Johnson, DFL-Willmar, is majority leader of the Minnesota Senate.