January 14, 2007
Investment Calls For Fairness and Accountability, Not Just More Money
StarTribune columnist Katherine Kersten focuses on potential tax increases in a column about early proposals before the Minnesota legislature ("DFL's addition to tax-and-spend retains its grip"). She starts by once again mischaracterizing the state's temporary budget surplus:
Then she attacks "tax-and-spend fever," not at all dealing with whether additional money is needed or how it would be used by the state to benefit those hard-pressed taxpayers. New proposals always can benefit from thoughtful critique, but this kind of criticism is not helpful to legislators trying to solve real problems. However, it is worth noting that the various proposals Kersten dislikes do have a common drawback. All would increase the regressivity of the state's revenue system — unless there are provisions to reduce their impact on low- and moderate-income earners, who already pay a disproportionate share of their income in taxes and fees compared to top earners. There are sound reasons to raise revenue from a variety of sources, and some types of taxes or fees may be more politically acceptable than others. But Minnesotans also want fairness, and we trust that fairness will be a key consideration as these proposals move through the legislative process. What's less clear in the early going is how other important principles laid out in the Invest for Real Prosperity strategy might be incorporated in legislation. As a Pioneer Press editorial points out:With a projected $2.2 billion state budget surplus, legislators could have funded champagne-style programs while avoiding the headache of higher taxes. Given the surplus, some hard-pressed Minnesota taxpayers were even dreaming of a rebate.
Few hard numbers have been attached to these early proposals. DFLers seem convinced that they will reap hundreds of millions from "tax compliance,'' meaning better tax collecting. At the same time, the state surplus is not large enough to accommodate huge new permanent programs.
This argues for the DFL to focus on one or two top priorities rather than promising to deliver on everything — especially when everything requires millions more in state spending and higher taxes.
And finally, we have not heard much from Democrats that suggests a passion for accountability and measuring progress — in determining, for example, whether more money for education will result in better education. The voters who elected them want and need these assurances, and we hope to get them as the session progresses.
– "Big spending doesn't always yield big ideas," St. Paul Pioneer Press
Critics like Kersten try to equate investment with raising taxes. But investment is about much more. In the months ahead, as legislators consider how to invest in the state's future, Growth & Justice will be encouraging discussion about accountability, measurement and results that benefit all Minnesotans.
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