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.
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.