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Governor Tim Pawlenty: Hero of the Taxpayer

From Kelly William Cobb on Friday, May 15, 2009 11:49 AM
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After the legislature proposed billions in higher taxes this year, Minnesota Governor Tim Pawlenty (R) announced yesterday that he will trim and balance the state's budget without raising taxes.

Earlier this week, the legislature finished passing a series of budget bills that authorized $34 billion in spending over the next year.  However, in a glaring sign of fiscal irresponsibility, the legislature's budget overspends anticipated revenues by nearly $3 billion.  Gov. Pawlenty, a signer of the Taxpayer Protection Pledge to oppose all tax increases, announced he would use a line item veto to balance the budget, while maintaining his commitment to veto any tax increases.

The Democratic-Farmer-Labor (DFL) led legislature has been pressing for numerous tax hikes since the beginning of the legislative session.  The Senate proposed $2.2 billion in higher income taxes, while the House proposed $1.5 billion in higher taxes on resident and small business income, digital goods, cigarettes, and alcohol beverages, as well as eliminating a number of tax deductions.

Legislators recently approved a bill proposed by the Tax Omnibus Conference Committee that would raise $1 billion in higher taxes on income, alcohol beverages, and credit card companies. However, Gov. Pawlenty - maintaining his no-tax pledge - quickly vetoed the bill last week.

Below is ATR's press release commending Gov. Pawlenty or click here for a PDF version.

Taxpayer Group Commends Gov. Tim Pawlenty
for Pledging to Balance Budget Without Tax Increases
 
Washington, D.C. – Americans for Tax Reform commends Gov. Tim Pawlenty (R) for upholding his Taxpayer Protection Pledge and vowing to balance Minnesota’s budget without any tax increases passed by the legislature.
 
Gov. Pawlenty is a signer of the Taxpayer Protection Pledge, a written commitment to Minnesotans to “oppose and veto any and all efforts to increase taxes.”
 
Minnesota lawmakers have pushed for over a dozen new tax increases this year. The Senate proposed $2.2 billion in higher income taxes, while the House proposed $1.5 billion in higher taxes on resident and small business income, digital goods, cigarettes, and alcohol beverages, as well as eliminating a number of tax deductions. Legislators recently approved a bill proposed by the Tax Omnibus Conference Committee that would raise $1 billion in higher taxes on income, alcohol beverages, and credit card companies. However, Gov. Pawlenty quickly vetoed the bill last week.
 
“Raising the income tax would destroy small businesses that are the state’s primary job creators,” said Grover Norquist, president of Americans for Tax Reform. “Additionally, taxing declining revenue sources like alcohol or cigarettes will only lead to more tax increases in the future to compensate. I applaud Gov. Pawlenty for his leadership and dedication to the taxpayers and consumers of Minnesota by maintaining his steadfast opposition to higher taxes.”
 
On Wednesday, the legislature finished passing a series of budget bills that authorize $34 billion in spending over the next year. However, the passed budget overspends anticipated revenues by nearly $3 billion. Gov. Pawlenty yesterday announced he would use a line item veto to trim and balance the budget without raising taxes.
 
“It is fiscally irresponsible for the legislature to approve a budget that overspends revenues for the next year, while continuing to press for tax hikes on small businesses, residents, and consumers,” added Norquist. “Thankfully, Gov. Pawlenty understands that you do not raise taxes and take more money out of Minnesotans’ pockets during a recession. By vetoing tax increases and vowing to trim the bloated state budget, Gov. Pawlenty has shown he is truly a hero of the taxpayer.”

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Comments

Finally, a governor who isn't afraid to stand up to his legislature!
>> Friday, May 15, 2009 4:56 PM

I guarantee my property taxes will be higher because of his moves - one of the first things he is hacking is local government aid. I live in a small town, and the result of the move will be an increase in taxes here - he is simply shifting the burden for his own political gain.
>> Murphy Tuesday, May 19, 2009 8:11 AM

Pawlenty is NOT the hero of tax reform. He has not raised taxes, but he has raised fees on many things. He has also cut funding for local govt which have been forced to raise taxes for things like schools. So, while he can be all self-righteous about not raising taxes, I AM STILL PAYING MORE!! That is no hero.
>> Minnesotan Tuesday, May 19, 2009 8:21 AM

Not to mentioned, rather than raising taxes for a temporary five window, he would rather borrow money though bonding. How is that fiscally responsible. The people who run this site need to look more closely at who they support. Is there anyone there who actually lives in Minnesota? It makes me so mad that you stroke Pawlenty's ego with articles like this!!
>> Minnesotan Tuesday, May 19, 2009 8:24 AM

I agree with others who have posted - Pawlenty is NOT a hero of tax reform. He'd rather borrow in combination with slashing of essential services so he can claim to never have raised taxes when he runs for higher office in 2012. He's forcing county and city governments across Minnesota to be the bad guys as they WILL be forced to raise taxes. That's not brave - it's self-serving.
>> Concerned MN Resident Tuesday, May 19, 2009 9:50 AM

In response to those comments above: First, bonding against the tobacco settlement agreement is not fiscally irresponsible. Since the settlement is paid to states over a long period of time, they simply borrow against guaranteed future revenue. That means they won't have to raise taxes now OR in the future to cover the bonds. At least 6 states have done this to cover a total of $9 billion in overspending in lieu of tax hikes.
>> Kelly William Cobb Tuesday, May 19, 2009 12:35 PM

Readers are correct that Minnesota property taxes are out of control. However, local aid is already paid for by your state taxes and then redistributed back to localities. Pawlenty’s proposal cuts aid by $480 million – less than 2% of the $24 billion in revenue localities had in 2006 (latest data). At the same time, spending by localities increased by 8% between 2003 and 2006, and in every year localities spent more money than they had in revenue. ATR does not support raising local taxes, however we do support accountability at local level, where overspending is as rampant as it is for the state.
>> Kelly William Cobb Tuesday, May 19, 2009 12:42 PM

Ah yes, very heroic to call for the weakest and most vulnerable of the state to pull up their bootstraps for the rest of us. I get to keep an unnoticeable fraction of my pay check so I can stay fashionable and keep eating out while paying my car loans and cable bills while those less fortunate than me lose their General Medical Assistance Care. BUT NO NEW TAXES!!! WHOOOO!!!!
>> Minnesotan Tuesday, May 19, 2009 1:29 PM

Minnesotan - if you have no problem with paying more to the government, you should campaign for a 'tax me more' fund to be started up in Minnesota so people like you who (who knows why) seem to think taxes are efficient and work can volunteer to give more money to the state for things like General Medical Assistance Care. Or is it that you only want other people to pay for you?>
>> Bill R Tuesday, May 19, 2009 1:46 PM

Why aren't you calling for strict transparency legislation and spending restrictions? The reason people don't want higher taxes is they are giving their money over to people who have proven to spend it ineffectively (to say the least). Borrowing is not a long term solution either, the answer is to streamline the government and dump programs that waste ludicrous amounts of cash. BUT if the taxpayers never stand up and say 'stop!', then the government will never exercise fiscal restraint because they can always rob the people to satisfy themselves and their special interests.
>> Maximillian Tuesday, May 19, 2009 2:10 PM

If you feel guilty about being 'more fortunate than others' (I would say you are not as fortunate as you think judging by your brain malfunction) Feel free to go give your belongings to the nearest poor people. That would be far more efficient than giving it to the government first.
>> Maximillian Tuesday, May 19, 2009 2:13 PM

Maximillian - the reason people don't like taxes is NOT because they give it to people who have been proven to spend it ineffectively. Whilst it is true that governments spend money ineffectively (to say the least) this isn't the fundamental problem with taxes. Similarly the fact that taxes depress the economy, kill jobs and hurt family isn't the main reason why taxes are bad. The real problem with taxes is that they take money away from people who earned it and give it to people who don't. Legalized theft. Simple as that. Also - Minnesotan 1 - Why do you hate freedom?
>> Freedom Fighter Tuesday, May 19, 2009 2:17 PM

FREEEEEEDOOOOMMMM!
>> Cambodian Midget Fighter Tuesday, May 19, 2009 2:21 PM

I disagree with Cobb and do believe that borrow on the future revenues of the tobacco settlements is fiscally irresponsible. One, those funds are not yet in pocket, so pulling income from outside of the budget cycle defies the purpose of a balanced budget law. Two, the use of the funds is not the intended use of those funds. So, those funds are being misappropriated. Both of these points demonstrate fiscal irresponsibility. The "No New Taxes" pledge people need to focus not on the politician's end of the pledge, but on the citizen's end. Who cares what the politician's claim... does the citizen play more at the end of the year? In Minnesota, we are paying more under Pawlenty. Back to the beginning... he is no hero.
>> Minnesotan #1 Tuesday, May 19, 2009 4:26 PM

Citizens of MN once had a quality of life envied by the rest of the nation. Under Pawlenty's "no new taxes" policy, MN is no longer the great place to live it once was. P.S. While Pawlenty is allergic to new taxes, he doesn't seem to mind "fees" or any other "taxes in disguise". He also has no qualms about pushing off state budget responsibilities onto local government agencies. It's all a shell game.
>> Concerned MN Resident Wednesday, May 20, 2009 12:10 AM

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