WEEKLY LEGISLATIVE UPDATE

FROM
THE

OFFICE

OF SENATOR

DAVE THOMPSON

PROUDLY SERVING SENATE DISTRICT 58

FOR
TAXES This week we took our first look at some proposed budget bills, as well as the Senate Democrats tax increase plan. The Senate Tax Reform Division report, scheduled for debate and a vote early next week, includes many of the sales tax proposals originally included in Governor Daytons first budget proposal. These provisions were ultimately taken out of the governors plan because of almost universal opposition.
The Senate plan would impose new sales taxes on goods and services including such items as clothing, haircuts, and auto repairs. Also included in the plan is an affiliate nexus tax, referred to as the "Amazon tax, and a new sales tax on digital downloads. The largest tax increase in the Tax Reform Division report is a $0.94 per pack increase in the cigarette tax, identical to Governor Dayton's tax plan. As I have said many times, I am open to tax reform that broadens the base and provides for a rate reduction that would make the plan revenue neutral. HOWEVER, the DFL plan does not reduce the rate enough. I cannot support a bill that requires more and more money from hardworking taxpayers for the sole purpose of growing government. We do not need to raise taxes! Thanks to modest economic growth, there will be an additional $1 billion in revenue coming into the state next biennium in comparison to the current biennium. That is more than enough to fund effective and efficient state government.

THE WEEK ENDING:

FRIDAY, APRIL 12, 2013

CAPITOL INVESTMENT/BONDING PROPOSAL

The governor and DFL legislators want to borrow at least approximately $750 million in addition to the proposed $3 billion increase in general fund spending. This is not a good idea. This is not a bonding year. We can address legitimate capital investment issues next year.

SUMMARY When this legislative session started, it was my sincere hope that I would be able to work with Democrats on issues related to education and taxes. I truly believed we could find common ground on many reform ideas. Unfortunately, the governor and DFL legislators have lapsed back into the bad habit of simply throwing money at every problem rather than working on bipartisan solutions. I stand ready at any time to work with all of my colleagues to find effective solutions to our problems. But I cannot support an agenda that would take more and more from our citizens to fund programs that are wasteful and ineffective.

30 DAYS OF WASTEFUL SPENDING

DAY ONE: $7,000,000 FOR THE MPLS SCULPTURE GARDEN DAY TWO: $3,400,000 FOR SNOWMAKING EQUIPMENT IN NORTHERN MINNESOTA. DAY THREE: $840,000 FOR EXOTIC OVERSEAS TRIPS FOR ARTISTS DAY FOUR: $2,400,000 FOR BUS PASSES

TRANSPORTATION The Transportation Committee discussed and amended its Omnibus Transportation Finance Bill on Wednesday. It includes base-level funding for Metro Transit operations and highway funding. Unfortunately, the bill also includes significant cuts to Department of Public Safety programs such as crime victims services grants, emergency services programs, and the Bureau of Criminal Apprehension. An amendment offered by Sen. Eric Pratt (R - Prior Lake) to restore public safety cuts was, unfortunately, defeated by Democrats on a party-line vote of 9to 7. The bill was supposed to be passed to the Finance Committee on Wednesday, but was instead tabled.

CONNECT WITH SENATOR THOMPSON:

www.senate.mn/SenatorThompson www.twitter.com/ThompsonSenate Sen.Dave.Thompson@senate.mn