eUpdate 12/1/08
1. Here Comes the Tax Debate
2. Sales Tax Increases, Round 2
3. The “Train to Nowhere”
4. Taxpayer Field
5. Do You Want a Piece of the Bailout Pie too?
1. Here Comes the Tax Debate
This Thursday the state budget forecast will show us how many billions of dollars the state is in the red. Projections say it could be as much as $4 billion, and with the economy the way it is, most won’t be surprised. As in the past, you can bet that the DFL-controlled legislature will claim tax increases are the only way to balance the budget.
Already Speaker Margaret Anderson Kelliher has been talking about more taxes. The Bemidji Pioneer reports her as saying, “Always the hope is to do it mainly through reductions or program changes. I’m not sure it’s going to be completely possible.” Come on, Ms. Kelliher, it doesn’t matter how large or small the budget shortfall is, you’ll always propose raising taxes first.
Kelliher then goes on to say that the real challenge is how we can balance the budget and still invest in things that “make Minnesota stronger.” That is code word for “even though we have a $4 billion budget shortfall, we still need more spending.”
Once again, hold on to your wallets, Minnesota! January 6th, and the start of the 2009 legislative session, is just around the corner!
2. Sales Tax Increases, Round 2
Other legislators have piped up regarding the budget shortfall debate too. Sen. Tom Bakk, Chairman of the Senate Tax Committee, said that we can expect many cuts to the state budget, as tax increases alone won’t do the trick. We’re pleased with that line of thinking.
However, Bakk went on to say that one proposal he is looking at is to broaden the state sales tax “to include products and services that are currently exempt.” It seems we were warning of this proposal during the No Sales Tax Increase campaign…and, unfortunately, it turns out we were right again.
3. The “Train to Nowhere”
Phil Krinkie's recent commentary on the "Train to Nowhere," the proposed rail line from Minneapolis to Duluth, drew expected criticism. The Duluth News Tribune jumped into the fray saying, Traffic congestion, air pollution, gas prices, the hassle of airport security, and high airfares have created a positive perfect storm for passenger rail. More than 200 cities and counties are actively asking Washington for rail funding. Duluth shouldn't – and won't play second fiddle."
That is precisely the point of Krinkie's article: If there is this "perfect storm" creating demand for passenger rail service, why aren't greedy private entrepreneurs lining up to build rail lines and run trains? Why are cities and counties lining up for public subsidies? The answer is pretty simple: the "perfect storm" is the perfect opportunity for parasitic cities and counties to prosper at the expense of taxpayers who will indefinitely subsidize the construction and operation of passenger rail.
The fundamental flaw of rail transit logic is that demand is high only because the private benefit of a train ticket is paid for by someone else. If scamming taxpayers for private benefit is the future that this rail line holds for us, it is indeed a "train to nowhere."
4. Taxpayer Field
Before Citigroup began to face financial problems, they decided to pay $400 million over 20 years to have the naming rights of the new Mets stadium, Citi Field. Now that taxpayers have been forced to bail out Citigroup, two New York City Council members want them to share the naming rights of the new Mets ballpark with taxpayers, and call the stadium Citi/Taxpayer Field. After all the bailouts are over, how many other naming rights should taxpayers take advantage of?
5. Do You Want a Piece of the Bailout Pie too?
If everyone else is asking to be bailed out by taxpayers, why shouldn’t taxpayers request money too? That’s what Grover Norquist, President of Americans for Tax Reform, thought, and so he sent his formal request to the Treasury. The letter along with application asks for the $700 billion bailout money be given to taxpayers via several tax cuts which he lists. Although the letter will probably never be taken seriously, it’s good to see there’s at least one good idea out there!
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