Here Comes the Neighborhood
May 2, 2013
Liberals never learn that people with common sense and the means to relocate can spot a good deal—or a bad one—and react accordingly. If you start meeting new neighbors who are from Minnesota, this may be why.
Minnesota Republicans lost a two-house legislative majority in 2012 and there’s nothing left to restrain Liberal Governor Mark Dayton. In fact, the Democrat majorities are vying to outdo him.
They’ll be passing a budget in a couple of weeks and it won’t be pretty.
Dayton proposes to keep the sales tax at 6.875 percent, raise the income tax rate from 7.85 percent to 9.85 on earnings above $250,000, and boost corporate taxes $297 million.
House Democrats want a “temporary” 11 percent surcharge on incomes above $500,000, a permanent income tax rate increase to 8.49 percent for earnings above $400,000, and higher alcohol and tobacco taxes. They’d cancel $800 million in delayed payments to local schools and redistribute a quarter-billion dollars through bigger property tax credits for low-income households and renters.
Senate Democrats plan something even worse: a 9.4 percent tax rate on incomes above $140,000 and nine percent kicking in at $84,000! They’d extend a 6 percent sales tax to clothing and some consumer services, and increase tobacco taxes.
It’s the same old gambit of expropriating wealth on behalf of favored constituencies by soaking the rich, except nowadays, “rich” starts at 84K. Mindless taxation has given Minnesota an unending string of deficits. Meanwhile in plain sight across the river, Wisconsin broke that cycle, turned deficits into surpluses, and now looks to cut taxes.
Western Wisconsin entrepreneurs will wish they could land a Sven and Ole’s pizza franchise with easy I-94 access, to capture the trade sure to head east as Democrats turn the phrase “Minnesota Friendly” into an example of ironic humor.