August 03, 2006
Taxes in the News
A caller asks: Do "no new tax" pledges tie the hands of leaders who have to plan for the future?
Sometimes the answer depends not on political philosophy, but on level of government.
Endorsed candidates for governor say they won't raise taxes, but the state largely relies on funding sources — income and sales taxes — that rise when the economy rises. Local governments don't have that benefit; they must set a spending level and levy the tax to meet the budget.
In case you missed it today, this is part of the discussion on MPR's Midday. The program hosted David Strom, President of the Taxpayers League of Minnesota, and Minnesota state representative Paul Marquart (DFL-Dillworth), a leading member of the House Tax Committee.
St. Paul Mayor Chris Coleman posted a city budget cruncher tool to illustrate the challenge he faced. Yesterday, he proposed a tax increase as part of his plan to solve the city's $16.5 million budget gap. His finance and budget director, Matt Smith, answers questions in today's Pioneer Press.
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