Dayton Proposes to Raise Taxes; No Spending Cuts

Former U. S. Senator Mark Dayton

When former U. S. Senator Mark Dayton announced his intention to run for Governor of Minnesota last month, he proposed to raise taxes on the top 10 percent of income earners, which he claims will bring in an additional $3.8 billion in a two-year biennium. At the same time, he claims, according to this Minneapolis Star Tribune article, that he “whatever I can, whenever I can, wherever I can to bring new jobs to our state.” Maybe someone should tell him that taxing job proviers more is not the way to attract them to our state.

The Truth Detector gives Dayton some credit for his honesty in his complete love of government bureaucracy, as he gives no indication that he would cut or streamline government at all. He only wants to raise taxes and spend more.

Dayton, like many other tax-and-spend advocates, cite the Tax Incidence Study to claim that wealthy Minnesotans pay a smaller percentage of their disposable income in taxes than middle income or lower income folks. This is where the Truth Detector has to give Dayton a “half-truth”, because every time Dayton and his taax-and-spend allies bring this up, they fail to tell the whole story.

Yes it’s true that high income earners pay a smaller percentage of their income in taxes, according to the Tax Incidence Study. This is because the study takes into account regressive taxes (those that fall most heavily on the poor and middle class), such as gas taxes, property taxes, sales taxes and alcohol and tobacco taxes. The income tax (which is very progressive in Minnesota) hits high income earners very hard.

The part of the story that is not told is the part that makes the most sense, if one takes a few seconds to think about it. High income earners pay a smaller percentage on almost everything, when compared to folks who make a more modest income. Think about it! Utility bills, food, clothing, car payments, groceries. It may not seem fair to a lot of people, but high income earners have more money at thier disposal for life’s necessities than middle-or-low income earners. Of course, their tax burden will be a smaller percentage, when factoring in all taxes.

The other part of the story that the tax-and-spend crowd will refuse to tell is that liberals in the Legislature have been effective at raising regressive taxes in recent years, such as the gas tax, and the additional sales tax for the arts and outdoors. These are regressive taxes that are disproportionately paid by low and middle income folks. So they made that tax system in Minnsota more regressive, and now they cry about how unfair it is that the rich aren’t paying their fair share, so let’s sock it to them by raising the income tax!

And politicians like Dayton, who probably never had a private sector job, have virtually no capacity to make government smaller.  Heaven help us if he or one of his ilk become our governor for the next four years.

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