Why raise taxes when we have a surplus?
Taxes are due April 16. Do you know where your tax dollars are going? Do you know if you’re classified as “wealthy”?
In 2006, Minnesota ranked #12 in total state taxes — beating out states like Georgia, which has almost twice our population, and Wisconsin, which has almost half a million more citizens.
Almost 20,000 Minnesotans are taking a stand this weekend, and it’s not too late to join the party.
Our current tax system doesn’t figure in consumption, debt, or use of services. Instead it relies on income as a sole variable. That means if you make over $50K/year, you’re considered “wealthy” by the state of Minnesota. Now suppose you have school loans, a suburban apartment, car payment and typical bills. You have enough cash to go out to eat on the weekends and donate to private charities and your local church, but you surely don’t seem wealthy to me. You’re more than happy to allocate tax dollars to police, fire and road maintenance. But say that even though you don’t use social services, light rail or go to Twins/Vikings games — you’re expected to foot more of the bill for these government expenses then someone making $45K/year who uses all three.
Meanwhile in the state of Minnesota (by some miracle of God in our spendthrift state) Pawlenty’s budget created a massive surplus for this coming year. But instead of leaving taxes the same, lowering them or giving us a rebate, the MN Congress plans to raise taxes again!
From a Jason Lewis editorial in the Pioneer Press:
There are, it seems, two ways to compute Minnesota’s onerous tax burden. One way is to take the total amount of revenue collected and see which households - rich and poor - are contributing the most. For instance, if someone invites you to dinner and he or she picks up 75 percent of the tab, it might be fair to say they’re paying the most.The other way - favored by the three amigos - is the “ability-to-pay” scheme. That is, instead of computing who is actually paying the taxes, they figure individual taxes paid as a percent of someone’s personal income, and not as a percent of the total tax burden. So, for example, our dinner friend who paid 75 percent of the meal’s cost should really be paying closer to 90 percent because his or her income is greater than ours. Sound fair? I didn’t think so.
As of Tuesday the 10th, more than 17,000 Minnesotans have signed a petition asking politicians to stop spending the budget surplus. With no serious party or media call for tax reform, everyday people are raising their hands to say enough is enough.
This Saturday, there’s a Tax Cut Rally on the steps of the state capital to officially present the petition to the Governor and leaders of the Legislature on the steps of the capitol. Congresswoman Michele Bachmann, Congressman John Kline and others will be speaking at noon.
Sign up for the Tax Cut Coalition here.
is it possible our tax revenue is so high is because we are home to a multitude of corporations (including a few on the Fortune 500 list) and the Mall of America. Each of these brings in tens of millions of dollars a year by themselves.
That’s a great question. I know the MOA gets huge tax breaks in the 100 millions. I’d be interested to know the specifics, though.
When schools are closing or underfunded, parks are underserved, necessary construction is delayed, and libraries are closing, why does a tax cut make sense? Taxes pay for things. There are always important things that need to be paid for. There are dozens more that make our society better. I get that taxes are tough. I’m self-employed and I just shelled out a ton for my 2006 return. But I live within my means and I don’t think my taxes should be cut just because I don’t use certain services. Someone else does, and god forbid, someday it might be me. Come on, people, remember the social contract? We all pull together so we can all live better, not just most (or some) of us.
I don’t think everyone signed the social contract that reads “you have to pay for ALL government services, even those you’ll never use or those that aren’t monetarily efficient.” Why does everyone pay for public schools? People without kids or those who send their kids to private schools shouldn’t have to pay for this service. Libraries aren’t imperative to society — just look around Barnes N’ Noble. I’m all for certain services - hell, even welfare for those deserving. But there’s rampant abuse and misuse of public funds in almost all sectors. I think we have enough $$ to go around as it is.
I’m all for paying for government services that I don’t necessarily use for the greater good of society, but the inefficiency in government completely boggles my mind. Corporations preach productivity and innovation all the time. Does the government?
whoa, when did this become “minnesota metblogs exposes democrats”? people got different ideas about government. some see themselves as apart from “we the people.” to them, government is the enemy. i mean, it takes our money!
other people think we are the government. it spreads risk and builds and supports things that are in the public good, rather than private interest. the gov’s got voters, private interests got shareholders and bottom lines.
minnesota’s got a lot of public good. the social contract is the choice to live under our laws, it’s the choice to “you reap the benefits of our system and therefore pay to help us all.”
“why does everyone pay for public schools?” because people being educated is a good thing. if it were privatized, better services would go to the better off, creating a permanent underclass.
“there’s rampant abuse and misuse …” this sort of thinking gets the left in trouble too. they see the democrats as corrupt, not liberal enough, etc, etc. so they start the green party. or the wonkish types join the mn independence party. we’re stuck with what we got, so you work within the system to eliminate corruption or whatever your beef, you don’t chuck the system all together.
i think we are the government. government helps push change the easiest. and besides, even if i thought taxes/bureaucracy was the enemy and spent my time fighting taxes, it’s a losing battle and helps no one. cutting taxes pushes burdens on to the poor (mn care) and the less powerful governments (lga problems, property taxes). it sounds great in principle but it works out horribly in practice.
I don’t think posing this question makes this “minnesota metblogs exposes democrats” in fact I don’t think parties need to be brought into this kind of discussion.
This discussion is about the social contract, and yes we did all agree to live under it, something many people don’t know or think about (including Greg).
The whole idea of “How does this affect me?” versus how does this affect the whole is fundamental but I don’t think it has to contribute to party polarization.
I think it’s very easy to confuse this whole surplus issue with how we are paying taxes. They’re really two different issues.
Do we need taxes raised? I don’t think so, but that is mostly because selfishly I don’t want to pay. :)
I also think that there is a point to be made that the schools are struggling, and many state departments need more employees. Has anyone tried to get their drivers license in Eagan lately?
I don’t know where all the money went, but I can’t make an argument that taxes should be going unless I obtain that information and can make an INFORMED ARGUMENT.
We live in a larger metropolis that grows every year by leaps and bounds. To keep up with the growth we have to pay more. If you don’t want to pay those taxes, move out of the state. Take up social contract elsewhere. Otherwise enjoy your short commute, and pay your taxes.
I’m glad to pay taxes, but should I pay a significant higher percentage in taxes than someone who makes $5k less than me a year when I use less services than that person?
Jenny, it’s not “posting this question” that’s the weird thing, it’s “This Saturday, there’s a Tax Cut Rally … Congresswoman Michele Bachmann, Congressman John Kline and others will be speaking at noon … Sign up for the Tax Cut Coalition here.” That just seemed like a commercial.
Yes, it is easy to confuse the issue. Exhibit A: “The Tax Cut Coalition” rally. This seems to slip into an argument about cutting taxes, rather than a reasoned discussion about whom we would want to tax and what we want to fund. One side refuses to raise taxes, period, so this reasoned discussion often fails.
should I pay a significant higher percentage in taxes than someone who makes $5k less than me a year when I use less services than that person?
Okay, but where’s the cutoff? Is it different from $25k to $30k? From $85k to $90k? $500k to $505k? Because obviously it’s different from $25k to $85k. The person that falls just on the other side of the tax bracket cut off is always going to be a little peeved.
You also have to consider how the surplus came to be in this cycle. Taxes are an ongoing sources of revenue. Is the surplus a result of one-time funds?
yeah, because the metroblog doesn’t promote Anti-Bush Protests, Planned Parenthood or do profiles of DFL politicians.
haha. metblogs is sorta weird that way, being a team of different bloggers (in case of erica, very different.. kidding), organized around one place.
politics stuff (like the stuff you pointed out, except that non-argumentative profile of ellison) bugs me cause most blogs are so political as is (or become political, *AHEM!nspeak). It’s nice to get a break from it on metblogs and read about … beer tasting.
but i dunno, that’s just my take. i bet most other people like that blogs aren’t focused and include any old thing, including that political stuff.
in case of erica, very different.. kidding
Hey!
I think it’s refreshing to see a different opinion and have it spark some conversation. We haven’t had this many comments on a post in a while. It may not be what you’d rather see, but it inspired you to comment several times, Chris.
It’s a group blog and we all get to say what we want. I’m not gonna argue with that.
Actually, taxes are due April 17. The 15th is a Sunday, and the 16th is a holiday in Washington. I assume the states follow through so there is only one tax day. But right on the Minnesota Department of Revenue Web site, there is a link to”If you’re unable to file by April 17.”
Go to: http://www.taxes.state.mn.us/individ/paying_your_taxes/payment_plans/ext_payment.shtml
You’re right! Apparently the IRS put out some misinformation about the tax due date being on the 16th. Luckily, I did mine in February. :)
I wish I could have mine done already. I’m expecting a refund. Except that my company jacked up their reporting from two years ago and so according to the IRS I owe. Until they straighten it out, I can’t file because they’ll garnish my refund.
I didn’t realize that Minnesota is a “love it or leave it” kind of place.
Before you get all social-contract-happy remember that this sword cuts both ways. Do you have that same stance on issues where you would like to see change? I would assume not, because you would just shut up and leave, right?
yeah that “love it or leave it” comment was a little extreme. however, taxes are foundational to government. it allows it to function — giving us important services and pushing along change when society allows it. if taxes are used badly, the system allows people to vote people out or change what’s funded. others think taxes should never be raised. this seems like an attack on the whole idea of government, especially within a state which has such a great history of good government.
My husband and I moved to Minnesota in the 1980’s. He had 11 job offers from all over the country ( as an engineer) , but we chose Minnesota because it was highly rated (Places Rated Almanac) for public schools (excellent funding and test scores), culture (excellent funding of arts, museums, theatre), roads and infrastructure (well maintained). It was, at the time, a higher taxed state. We were fine with that, because “you get what you pay for”, and for the most part it has been true.
But we see trouble ahead. Our roads are deteriorating, schools are underfunded, and citizens (mostly baby boom generation) don’t want to invest the way their parents did to ensure a quality work force and economic growth in the this state.
Now we are looking to leave Minnesota, and we’d like to find a state like the Minnesota we joined back in the 80’s — one where investment in the future is a priority, not tax cuts and dismantling of programs and educational opportunities.
We will take with us our wealth (net assets (after liabilities) over a million), our business, and our children. We didn’t mind paying taxes, but now we aren’t being given a choice about maintaining quality in our neighborhood and state. We are forced to find a place that values the things we value — education, quality of life, public safety, health care, and helping the least of us to become the best of us.
This isn’t the Minnesota we once knew.