Dayton vetoes "smokin' hot" MNGOP-crafted tax cut bill

greg davids.JPG
Davids described the GOP tax bill as "smokin' hot." He needs to get out more.
An exchange on the House floor Tuesday night succinctly captured the difference of opinion between MNGOP and DFL lawmakers about a tax bill vetoed this morning by Gov. Mark Dayton.

House Taxes Committee Chairman Greg Davids, R-Preston, described the legislation as a "smokin' hot tax bill." In reply, Minority Leader Paul Thissen, D-Minneapolis, said, "It's smokin' hot only because it's going to be burning a hole in our state budget."

Dayton, predictably, sided with Thissen. At a news conference this morning, the governor announced he'll be vetoing the bill, which he characterized as "not fiscally responsible."

According to the Star Tribune, the tax bill would've frozen the statewide property tax for businesses and cabins, sped up a sales-tax exemption for businesses purchasing capital equipment, expanded tax credits for investors in new ventures, and sweetened a sales-tax exemption for data centers and computer equipment. Property-tax relief for homeowners who face large increases and income tax credits for businesses that hire veterans were also included.
Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for markdaytonmug.jpg
Dayton really wants a new Vikings stadium, but he apparently doesn't want it enough to support the MNGOP's tax cuts in exchange for pro-stadium votes.

That's all well and good, but the tax cuts also would've drained $48 million out of the state's budget reserve in the current biennium and $145 million out of it in 2013 and 2014. Dayton said last month that he is not a fan of tapping into the budget reserve at a time when the state is just emerging from a financial abyss induced by the Great Recession.

Since Dayton's opposition to tapping into the general fund is no secret, Republicans tried to win his support for the tax bill in another way. Essentially, MNGOPers hoped they could blackmail the governor by suggesting they wouldn't vote in favor of a new Vikings stadium unless Dayton signed the tax bill into law.

Julianne Ortman, R-Chanhassen, said Dayton's support for the tax bill "sets the stage for success on the Vikings stadium vote." In response, Dayton's spokeswoman, Katharine Tinucci, said that "if [the MNGOP] is looking for a way to bury the stadium, they need to find a more direct way to do it."

Republicans, of course, believe that cutting taxes -- especially for businesses -- magically creates jobs. Said Rep. Steve Gottwalt, R-St. Cloud, during Tuesday's floor debate:
steve gottwalt.JPG
Gottwalt hasn't been paying attention to Wisconsin's recent jobs numbers.
These are job creators; these are our Main Street businesses who are sick and tired ... of the Democrat mantra of how they are somehow the evil wealthy, that they're somehow taking advantage of Minnesota. They create the jobs that put the food on the table, that create the resources for all the do-gooding you want to do.
We just have one question for Gottwalt and his ilk: How did the cut-taxes-and-the-jobs-will-come mantra work out in Republican-dominated Wisconsin? Oh, that's right, the Land of Cheese has lost more jobs in the last year than any other state.

Said Senate Minority Leader Tom Bakk, D-Cook: "You think Wal-Mart's going to hire anybody if we cut their property taxes? They will benefit on the corporate bottom line in Bentonville, Arkansas -- they're not going to hire more people."
My Voice Nation Help
10 comments
Sort: Newest | Oldest
Kirk the Conservative Jerk
Kirk the Conservative Jerk

The measure, HF 2337, sponsored by Senate Tax Chair Julianne Ortman, also includes tax credits for research and development and tax incentives for investments in developing companies. Furthermore, homeowners facing rising property taxes could find relief through increased property tax refunds.

Dayton say, "fu*k the homeowner!"

Decievious Leroy Johnston Jr.
Decievious Leroy Johnston Jr.

With all due respect Kirk, and I generally agree with what you have to say, but this tax cut bill would only have kicked in $4 million for the property tax relief.  That would affect like maybe 10,000 homeowners.  

What pisses me off about Dayton vetoing this bill is the fact that all it does is hurt businesses (especially small ones).  As I stated above with regard to my brother's business: His revenue last year was $2.8 million.  After paying salaries and other expenses (he owns a restaurant), his net profit was $86,000.  After Federal and State taxes, his net income was a whopping $46,000.  And this is a guy who works 60 hours a week.

So I guess, according to Democrats, my brother is a lazy, greedy, business owner.  Yet he employs 30 people with actual living wages (the lowest paid employees are 2 dishwashers who earn $12/hr, which is WAY above standard wage for that type of position).  Yet, somehow, my brother is too greedy.

Fuck You, Mark "Mr. Veto" Daytoon.  

When you get your Vikings Stadium built, I'll bet you'll get a free custom-built Executive suite in the new stadium so you can sit back, relax, have a couple of cocktails (or 9000) and watch a bunch of guys throw a football around.  Then, after they lose the game, he'll get into his $90,000 Mercedes Benz SUV, drive home to his $7.8 million dollar Lake home  on Long Lake, have another cocktail, then his Executive Chef will prepare him a meal of Lobster Bisque, Filet Mignon seared with imported Truffle oil, goose-fat-poached Asparagus tips, and for dessert, Chocolate Champaign Fondue.  Then, before he goes to bed, he'll sip another cocktail while he gets a luxurious back rub from his masseuse.

The next day, he'll head to the Capitol and tell the Legislature how "greedy and evil" small business owners are and how they should pay their "fair share" of taxes.        

  

Kirk the Conservative Jerk
Kirk the Conservative Jerk

And the proposed property tax relief that was in the bill for the middle class.... GONE! Dayton must hate the middle class homeowner right?

"vetoing the bill, which he characterized as "not fiscally responsible."

Ya, Dayton also said it was "irresponsible" to use the states budget surplus to pay down the school shift.  He thought we should spend that money on new projects and not our financial obligations.

mark the milquetoast moderate
mark the milquetoast moderate

A 145 million dollar tax cut when we are facing a one billion dollar deficit sounds like an election year ploy to me. Tax cuts for the middle class will not create jobs Kirk. Some voters have the ability to to past this folly.....they are called real conservatives.

Kirk the Conservative Jerk
Kirk the Conservative Jerk

No, a "real conservative" lives within his own means.   They turned last years 5+billion dollar deficit into surplus this year by such things as borrowing or "shifts."The future deficit is for 2014 and is calculated based on baseline budgeting. (automatic increase of government spending of 5-10% per year.)And your right, tax cuts for the middle class probably will have little direct effect on the job market, but it will put more discretionary cash in the pockets of the middle class to do with as they wish.

Trying to be reasonable
Trying to be reasonable

Yep.  I can use that extra $200 a year to buy the NFL Total Access package so I can watch the LA Vikings.  Come on people.  We subsidized 3 stadiums while the most popular team waited patiently. We subsidize major corporations so they will stay.  Let's just look at the Vikings the same way. Vikings games bring in 10s of Millions per in revenue, and jobs will be created/kept in building the stadium and staffing it. We may not like how it has to happen, but I know we will regret not having done it if it fails. 

mark
mark

should be "to see past this folly"

Decievious Leroy Johnston Jr.
Decievious Leroy Johnston Jr.

But just remember: it is FAR more important to put more money in Ziggy's wallet than it is to encourage start-up businesses and expand existing ones that will create more jobs.  Between MN's state tax of 7.85% and self-employment tax of 13.3%, my brother will be unable to expand his business this year.  That means a potential loss of 2-3 relatively high-paying jobs.

But oh, well.  A Vikings stadium is more important I guess.

LetsAllGetAClue
LetsAllGetAClue

The republican't rhetoric is wearing thin as the story just gets older and more stale...I hope Minnesotans will remember on Nov. 2 and vote this circus side show out of office!

Now Trending

Minnesota Concert Tickets

From the Vault

 

Loading...