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Wednesday, July 18, 2007

Response to the letter from Vitalis

This blog entry features a letter in response to Vitalis’s letter posted here. Since the July 5, 2007, response letter is not on the Chisago County Press web site, it is presented in this column for the convenience of the reader.


Different view on raising taxes
To the editor:

I would like to suggest the following to the letter writer from last week who was irritated by the fact that Governor Pawlenty chose to cut spending in 2002 instead of raising taxes by 18.5 percent like New York City Mayor Michael Bloomberg did when faced with a similar budget problem. Calculate the total amount of taxes you’ve paid since 2002. Write a check for 18.5 percent of that amount and mail it to the Minnesota Department of Revenue, St. Paul, MN 55145.

As for me, I’m OK with saving this money while still achieving private sector job growth of 135,000 jobs (vs. 151,000 for NYC) in a market that has 3 million fewer people than NYC. I’m also OK with our $1 billion budget surplus (some reports have this figure as high as $2 billion) instead of the NYC budget surplus of $1.3 billion. Considering the fact that Minnesota’s annual budget is about $44 billion less than NYC ($16 billion vs $60 billion) most people would say our $1 billion surplus is quite an accomplishment.

It’s too bad that, for the letter writer, political agendas such as being chairman of Rep. Jeremy Kalin’s political campaign (http://www.cfboard.state.mn.us/) get in the way of a fair and accurate communication of the numbers.

Bob Barrett


While neither letter writer gives the source for the numbers presented, if the numbers are accurate, Barrett has given a good answer to Vitalis. Both NYC and Minnesota recovered from significant red ink. Both accumulated more than a billion in reserve. Both added to the work force. But Minnesota did it without raising taxes. The state reigned in spending and the market went to work to provide the revenue for the state. It worked! Congratulations Governor Pawlenty and all Minnesotans who labor.

It is exceedingly difficult for so many Democrats to understand that a lower tax rate creates more taxable dollars. But JFK knew.

1 comment:

chisagomama said...

Well slap me along side the head and call me stupid. I just read Mr. Vitalis’ letter in which he compares Chisago County to New York City. To believe that comparison one would have to believe in the tooth fairy (Santa and the Easter Bunny, too). New York City and Chisago County are as different as night and day. Certainly Mr. Vitalis is not suggesting that the 18% increase in taxes New York City experienced would be good for our little county.
Mr. Vitalis’ idea about an economic summit is not a bad idea, but when has such a summit ever brought the intended outcome? None that I know of. And besides, just about the time the county and local municipalities would begin to reap the benefits, Mr. Vitalis’ friends in St. Paul would figure out a way to spend the profits.
The ONLY way to encourage economic development is to create a state where the business climate is welcoming and the states economy has sound underpinnings. The Democrats in St. Paul could create such a situation with one vote, but they won’t. They will just think of more and more ways to tax us into outer space.
No business is going to move to a state that just increased their taxes by 18%!
Mr. Vitalis, move to New York City and open a dive in.