Thursday, April 20, 2006

On taxing situations...

Some democrats have broken rank with their compatriots to vote down a provision that would have robbed Peter to pay Paul...
Six Democratic-Farmer-Labor members of the Minnesota Senate joined 29 Republicans Wednesday to defeat a bill that would have raised two business taxes to provide property tax relief for homeowners.

The action by the "gang of six," as one of the defecting Democrats labeled the group, was a defeat for Senate Taxes Committee Chairman Larry Pogemiller, who insisted on pushing the bill to a vote even though he knew some members of his own party opposed it.

The crossover votes by the Democrats also were a departure from the caucus cohesion that has allowed the DFL majority to retain tight control over the Senate for three decades.

"I have voted for every tax bill in 30 years — except this one," said Sen. Keith Langseth, a dairy farmer from Glyndon who was elected to the House of Representatives in 1974 and has served in the Senate since 1981.

The two business tax changes, a repeal of tax breaks for companies that have foreign operations and an increase in a statewide property tax levied against business, probably never would have become law, regardless of how the Senate voted.

That's because the Republican House majority opposed them, and because Gov. Tim Pawlenty signed a 2002 campaign promise to veto any tax increase.

But the surprising defeat of the tax bill is likely to change the political dynamics of the final four-and-a-half weeks of the legislative session and influence Senate Democrats to bring their tax and spending priorities more into line with the House and Pawlenty.

"It has to be modified," Langseth said of the defeated tax bill. "I think the gang of six now should sit down with the majority leader and the tax chairman and say what we'll accept."

In addition to Langseth, the Democrats who voted with the Republicans were: Terri Bonoff of Minnetonka, Tarryl Clark of St. Cloud, Ann Rest of New Hope, Dallas Sams of Staples and Dan Sparks of Austin. Rest is the assistant majority leader of the Senate Democrats.

It is interesting that Tarryl Clark, who has a reputation for being as liberal with other people's money as a skid row bum who found a 100-spot on the streetcorner, would side with the Republicans on this bill. Perhaps it is indicative that Clark is not too comfortably resting on her laurels received when she won a special election this past December, in what was once a Republican seat. Especially given the fact that Jeff Johnson, a promising candidate who is also an aviation instructor at SCSU, will be nipping at her heels in what is a largely red district. A vote for a tax increase in any form would certainly have sealed her credentials as a tax-and-spend liberal, and may have well sealed her fate at the ballot box in November.

But fear not, "Willing to pay for a better Minnesota" yard-sign carriers... if nothing else, the tax and spenders (of both political stripes) are tenacious when something comes between them and a good tax hike:
Lawmakers want cigarette charge reinstated

ST. PAUL (AP) _ Even before Minnesota's Supreme Court rules on the state's 75-cent-per-pack cigarette charge, the Legislature could vote on whether to impose a new tobacco tax to take its place.

A bipartisan group of legislators joined Minnesota health groups Tuesday in calling for a 75-cent-per-pack tax to replace the disputed health impact fee. The fee was struck down in December, and justices are considering whether that lower court ruling should stand.

"We should act now, we shouldn't wait for the courts," said Sen. Sheila Kiscaden, DFL-Rochester.

Kiscaden said she'll offer the tobacco tax proposal as an amendment to a tax bill due for a Senate vote on Wednesday.

Sen. Linda Berglin, DFL-Minneapolis, and Rep. Neil Peterson, R-Bloomington, have a separate bill to achieve the same result. They contend the fee that took hold in August led to decreased smoking and has kept price-sensitive youth from starting in the first place.

"Whether we call it a fee or call it a tax, it is good policy and we should continue that policy," Berglin said.

The current fee _ and a related charge on cigars and smokeless tobacco _ is expected to generate roughly $200 million a year for the state. Republican Gov. Tim Pawlenty recommended it as a way to break a budget deadlock.
"We should act now, we shouldn't wait for the courts," said Sen. Sheila Kiscaden, DFL-Rochester."

Heh... I guess some junkies can't wait for their next fix.



(Filed under
overtaxed, pass the pork)