The Bullet Minnesota Dodged

The Wall Street Journal tells the story of what could have been in Minnesota.

Here's a two-minute drill in soak-the-rich economics:

Maryland couldn't balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy. Politicians in Annapolis created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were "willing and able to pay their fair share." The Baltimore Sun predicted the rich would "grin and bear it."

Wow does THAT sound familiar?????? Minnesota's Legislature couldn't balance the budget either. I don't care what the Speaker of the House says, when you are spending $34 billion dollars and you are only bringing in $31.6 you are spending MORE than you bring in and that is NOT the definition of a balanced budget! Anyone who says that is needs to go back to 3rd grade math class! Oh and then there was the unaddressed $6+ billion in the current deficit that they never addressed.....

One year later, nobody's grinning. One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.

No doubt the majority of that loss in millionaire filings results from the recession. However, this is one reason that depending on the rich to finance government is so ill-advised: Progressive tax rates create mountains of cash during good times that vanish during recessions. For evidence, consult California, New York and New Jersey (see here).

The Maryland state revenue office says it's "way too early" to tell how many millionaires moved out of the state when the tax rates rose. But no one disputes that some rich filers did leave. It's easier than the redistributionists think. Christopher Summers, president of the Maryland Public Policy Institute, notes: "Marylanders with high incomes typically own second homes in tax friendlier states like Florida, Delaware, South Carolina and Virginia. So it's easy for them to change their residency."

....like Tom Golisano did?????

All of this means that the burden of paying for bloated government in Annapolis will fall on the middle class. Thanks to the futility of soaking the rich, these working families will now pay Mr. O'Malley's "fair share."

In Minnesota's case, it's not just the Middle Class that the DFL wanted to soak. With new taxes on cigarettes and liquor (in Minnesota) and junk food, fast food and soft drinks (on the national levvel) this new generation of Democrats are proposing some of the most (dare I say it) regressive taxes we have EVER seen!

As I said the other day - these are not your grandparents Democrats. These Democrats don't care WHO they soak as long as they can get their special interest spending projects passed. Thankfully (for Minnesota) we had a Governor who was willing to do what the DFL led Legislature refused to do - balance the budget.

Thank you Governor Pawlenty for doing your job.

Playing Political Chicken

/ˈkɒmprəˌmaɪz/ Show Spelled Pronunciation

compromise - [kom-pruh-mahyz] Show IPA noun, verb, -mised, -mis⋅ing.

–noun

1.	a settlement of differences by mutual concessions; an agreement reached by adjustment of conflicting or opposing claims, principles, etc., by reciprocal modification of demands.

2.	the result of such a settlement.

3.	something intermediate between different things: The split-level is a compromise between a ranch house and a multistoried house.

4.	an endangering, esp. of reputation; exposure to danger, suspicion, etc.: a compromise of one's integrity.

–verb (used with object)

5.	to settle by a compromise.

6.	to expose or make vulnerable to danger, suspicion, scandal, etc.; jeopardize: a military oversight that compromised the nation's defenses.

7.	Obsolete. a. to bind by bargain or agreement. b. to bring to terms.

Yesterday, Governor Pawlenty offered an olive branch to the DFL leadership on the budget. In a letter addressed to the Senate Majority Leader and the Speaker of the House, the Governor said that he would relent on his opposition to two of the three main sticking points between the the Legislature and the Governor's office and he would cut in half his request for bonding. In essense he was giving in to the DFL on 2 1/2 of the 3 main issues that the DFL had with the Governor's budget. The DFL's response was quick and predictable. Calling it a "false compromise" and a compromise in "word and not in deed" the DFL leadership of the House and the Senated doubled down on their intent to once again drive the state toward a shut-down (as they did in 2005).

So there you have it - in the idealistic world of Senator Pogemiller, Speaker Kelliher and Majority Leader Sertich the only acceptable compromise is for the governor to completely acquiesce to the DFL's demands. That is not compromise - that is blackmail! Thankfully the Governor showed the people of Minnesota exactly what the DFL leadership is up to and how willing they really are to compromise.

It is clear that the DFL leadership is not willing to do what is best for the PEOPLE of Minnesota. They are only willing to do what is best for the special interest groups that continue to fund their quest for power. Well played Governor - well played indeed!

Finally...

With 26 days left in the Legislative session (and with very little fanfare I might add), the House and Senate DFL majorities release their solution to the $6.4 billion dollar budget deficit. The Bemidji Pioneer reports...

ST. PAUL – Legislators arrived at the Minnesota Capitol in early January with five months to fix a multi-billion-dollar budget deficit.

Now, lawmakers are staring at the same massive budget problem and a deadline just three weeks out. And no one knows how the problem will be fixed.

Much of the Legislature’s heavy-lifting always occurs in the session’s final weeks – or, more accurately, days – as lawmakers scramble to pass a new two-year state budget, erasing a projected $4.6 billion deficit by the constitutional May 18 adjournment date.

Before we start looking at what the DFL led legislature finally proposed one has to point out again that they have had over 4 months to put forward a thoughtful solution to this bill. However, in their usual fashion, the DFL has pushed the state of Minnesota to the brink of a shutdown! It is no coincidence that this biennium budget, as with the 2005 budget bienium, happens to come on the political eve of a gubernatorial election.

After a year of knowing that there was a recordbreaking budget deficit (remember, the Legislature was told at the end of the LAST session that the deficit was going to be this bad) the DFL Legislature had all the time and resources that they needed to fix this pending crisis. Then when the took to the floor in January, the choose not to do anything. In fevruary, they choose not to do anything...March the same...Instead they spent that time writing legislation designed to blacklist and punish businesses that chose not to be unionized! It was not until April 21 that they introduced the first bill to try to fix the problem and their answer was predictable...they proposed tax increases on cigarettes, liquor and beer, snowmobiles, downloadable music (the so-called iTunes tax), clothing, food and gifts that you give to others (again). When they did finally decide to cut spending, the decided to cut school funding, public safety, hospital funding and veterans care funding. Meanwhile, Senators like St. Cloud's Tarryl Clark are sending out push polls to their constituents asking what "essential" services they would cut - even though the House and Senate proposals were already in committee (isn't it nice how they ask for your input AFTER THE FACT?). If the tax hikes (some quite regressive) aren't bad enough, the DFL Tax Bill repeals tax deductions for mortgage interest, charitable contributions (we can't have those charities competing for your tax dollars after all) and K-12 education expenses. The DFL's tax bill even takes away a gas tax credit that was designed to protect POOR PEOPLE from gas tax increases!

Even some DFLers were horrified by the increased taxes! Others came flat out and admitted what the rest of us have long said - increased taxes will push consumers to buy their goods elsewhere.

Senate Taxes Committee Chairman Tom Bakk, DFL-Cook, said eliminating the current mortgage interest deduction could hurt Minnesota’s high rate of home ownership and higher alcohol taxes would drive some liquor shoppers across the Wisconsin border.

Emphasis mine....

There can be no mistaking the DFL's motive here. House Speaker Margaret Kelliher Anderson is toying with the idea of running for governor as is Senator Tom Bakk, former House Minority Leader Matt Entenza, Representative Joe Atkins and the aforemention Senator Clark from St. Cloud. All of these legislators have a stake in making Governor Pawlenty (if he runs for re-election) or any Republican Legislator who decides to run look bad by forcing another government shut-down. It is their hope that they can again (as they did in 2006) blame the Governor Pawlenty and the Republicans for this government shut down. Will the voters of Minnesota fall for this blatent ploy again? Only if the Republican Party runs the same kind of lame campaign that they did in 2006. Hopefully they have learned a lesson from the last two elections and will put together (either as a party or as individual candidates) a campaign that finally holds the DFL accountable for their deceptive actions. Remember - NOT ONE DFL candidate for the House ran on tax increases in 2008. As a matter of fact they all ran as "fiscal moderates" who were going to be respectful of the taxpayers resources. Now that they have shown their true colors, it is up to the Republican candidates and the Republilcan Party to take advantage of that - if they want to regain the House in 2010.

See What You Started Governor?

During the last budget biennium Governor Pawlenty, in an attempt to say he stood by his "no new taxes" pledge insisted that his new cigarette tax was really a "fee". "It's a tax" activists on the left and right said - no a "fee" countered the governor...."tax" the activists asserted..."FEE" the governor insisted..."whatever" the activists shrugged as they walked away muttering something about walking and ducks....Well now the Governor's insistence is coming back to bite us all in the wallet yet again.....Representative Karen Clark (DFL-Minneapolis) has authored a pair of bills that, under the guise of being a "health and judicial impact fee" are designed to raise the taxes on beer and alcohol as much as 100%! Rep. Clark's "fee" is supposed to offset judicial fees and alcohol related court costs...right??? After all - the bill's respective titles do imply that. However, half of the fees go to (wait for it....)......


THE GENERAL FUND! This tax is not about offsetting "judicial" or "health" costs due to alcoholism. It's just one more way for the Democrats in the Legislature to pick the pockets of hardworking Minnesotans yet again!

Thanks for the latest sterling example of what the DFL is all about Rep. Clark! We really appreciate it.

Fueling the Debate Over Alternative Fuels

My partner in internet radio "crime", Jazz Shaw, spent the last half of last week at the New York City Auto Show (his field dispatches can be found here and here). However, the story that he brought back from Manhattan that interested me the most was this one (courtesy of Green Dreams).

“We need a simple way to store and carry hydrogen energy and a simple process to produce hydrogen, said Y.H. Percival Zhang, assistant professor of biological systems engineering at Virginia Tech.

Using synthetic biology approaches, Zhang and colleagues Barbara R. Evans and Jonathan R. Mielenz of ORNL, and Robert C. Hopkins and Michael W.W. Adams of the University of Georgia, are using a combination of 13 enzymes never found together in nature to completely convert polysaccharides (C6H10O5) and water into hydrogen when and where that form of energy is needed. This “synthetic enzymatic pathway” research appears in the May 23 issue of PLoS ONE, the online, open-access journal from the Public Library of Science.

Here is an exciting practical alternate fuel that does not use foodstuffs (a la ethanol) in it's generation and yet we have politicians who are stuck on dictating which form of "alternative" energy we can use (Governor Pawlenty and former President Bush with corn ethanol and current President Obama with electricity). Both of the current, politically popular alternatives have their disadvantages - ethanol with it's dependence on foodstuffs and electric fuel cells because....well where do you think the electricity comes from (hint coal fired and nuclear POWER PLANTS).......

Rather than governement deciding which alternative fuel will be the "winner" in the free market, how about we let the smart folks (like the smart folks at Virginia Tech) do their thing and figure out the best way to make alternative fuels that are easy to produce, easy to convert existing cars to and (most importantly) easy for the country to convert to. It is the common sense thing to do...

Oh No She Didn't!

Diane Sawyer did NOT just go there (transcript courtesy of Newsbusters).

SAWYER: And last night we heard the Democrats say that on key issues in this complex new globe that Barack Obama has been right and John McCain has been wrong. Your reaction?

PAWLENTY: Well, my goodness it's amazing that we're three days into the Democratic Convention and 60 or so days away from the actual election and they're still trying to plead with the American people or convince us that Barack Obama is ready to be president. The fact of the matter, he is not. President Clinton had 12 years as governor as an executive and commander in chief of the National Guard before he became president and Hillary Clinton, Bill Clinton, and Joe Biden all said during the primary season Barack Obama was not ready. Bill Clinton called it a roll of the dice. Joe Biden said he wasn't ready for the job as did Hillary Clinton and so for them to now say he's ready with great enthusiasm is quite hypocritical at least inconsistent with what they said previously. As to Senator Biden and Senator Obama's judgment, the record is replete with the fact they've made a lot of errors in judgment and John McCain has been a steady hand on the throttle.

SAWYER: But on the questions of resume, you know, some Democrats have said you're the same age as Barack Obama. You've been governor for just two years. You were in the state legislature. He was in the state legislature. Does this raise questions about your qualifications to be a heartbeat away from commander in chief?

PAWLENTY: Well, setting aside the issue of vice president, Diane, I've been governor for six years and commander in chief of the Minnesota National Guard for six years. When I was in the legislature I was also majority leader and did a variety of other things. But the questions continue to be, what have you done and what have you run? His accomplishments are nonexistent or essentially nonexistent and he hasn't run anything. He hasn't been an executive or been in charge of anything and lastly, the big problem or one of the big problems facing our country is the ability to work across party lines and get things done. John McCain actually has a record in that regard. Barack Obama does not. He has good oratory but when you shut the teleprompter off there's not much else there.

Emphasis mine.

For "journalists" they sure are doing a shoddy job of researching! I mean really - how could they mistake a two term governor for a two year governor? It is simply unconscionable that they could go into an interview like this!

If Tim Pawlenty is John McCain's VP pick and this is the best that the Democrats can come up with to ding him on, especially when the Democrats are bent on self-destruction, well shoot it may not be so glum of a year for Republicans after all.

Veto Fallout

The breathless hyperbole from the left (over Governor Pawlenty's line item vetoes) has been predictable and entertaining to watch. For example, Rep. Ellen Anderson accused the Governor of "hating the people of St. Paul". Rep. Tony Sertich accused the Governor of "singling out" projects in DFL Districts, but considering that the majority of the money spent in the bonding bill was going to DFL districts - since the DFL HAS overwhelming majorities in the House and Senate, what DID Rep. Sertich expect? Some examples include:

• $24,000,000 for a new Natural History Museum on the UM St. Paul Campus
• $2,000,000 for UM classroom renovations in Crookston, Duluth, Morris and TC Campus' (Morris is represented by Republican Torrey Westrom BTW)
• $11,000,000 for the Lake Superior Technical College for an addition to their Health and Science Center
• A $240,000 appropriate for ISD 11 to buy and develop a property - why should taxpayers in ISD 719 pay for property purchases in ISD 11?
• $3,000,000 for an expansion of the National Volleyball Center in Rochester (represented by a Republican and a Democrat)
• $2,000,000 to remove and replace the old Cedar Ave Bridge for bicycle users AND
• $11,000,000 for renovations to the Como Zoo gorilla exhibit

It is the last one that has the writers of MinnPost in a lather. "Pawlenty to gorillas: Drop dead" is the headline to this breathless rant at "The Glean"

Gorillas in shoeboxes. Trains wrecked. Gov. Tim Pawlenty tore through the bonding bill, line-iteming $208 million, twice as much as needed to get under his $825 million ceiling. The $70 million cut from a Minneapolis-St. Paul LRT link gets most of the press (the state would lose $450 million in federal dollars). However, $11 million nixed for bigger Como Zoo facilities, mostly gorilla habitat, punches the animal-welfare hot button.

I've been to the Como Zoo and while the gorilla enclosures could be a little bigger, it's not like the funding cut was going to FEED them or anything. If the gorilla enclosure is that important to the City of St. Paul, why don't they go to their taxpayers for the money? The answer is that the City knows that they will have a riot on their hands if they did. Just ask Mitch about what it is like to live in St. Paul.

For those of us who have bemoaned the media bias in this state, the Glean provides us with plenty of examples of proof.

Bonding politics: the PiPress cover says it all: "Sorry, St. Paul." (Hat tip to Finance & Commerce for this: "Pawlenty to St. Paul: Drop Dead.")

The funny (ironic and funny ha ha) thing is that both Minneapolis and Duluth papers are claiming the same thing. Come on guys....which is it? Which city does the Governor "hate" more?

And then there is the reaction from the Sorosphere.

Today, Minnesota Monitor compared Governor Pawlenty to a murderer:
“On Monday, Gov. Tim Pawlenty gave the state Legislature’s bonding bill a haircut almost as extreme as the one Javier Bardem wears in No Country for Old Men. In fact, much of the recent drama over the bonding bill seemed like a pale reprise of the Coen Brothers’ screenplay, with Pawlenty trading in his veep-quality coiffure for the malevolent comb-over of ‘No Country’ villain Anton Chigurh, who kills at the toss of a coin.” Source: Minnesota Monitor, April 8, 2008
“Once he had killed $100 million in spending from the bill, Pawlenty just kept killing.” Source: Minnesota Monitor, April 8, 2008
“Well, maybe Pawlenty is not such
an indiscriminate killer after all…” Source: Minnesota Monitor, April 8, 2008
“Even if you gave him the money [Pawlenty] still kill you. He’s a peculiar man.” Source: Minnesota Monitor, April 8, 2008

Emphasis in the MDE original. What can you say?

Seriously, folks. The Governor does not "hate" any of the cities. He just did the hard work that the Legislature refused to do. They were warned not to go over the 3% limit. They were TOLD that if they did the Governor would veto. They CHOSE to challenge the Governor and they lost. It's politics and if you are going to play the game, you have to be prepared to lose as well as win. The DFL legislature "won" on the Transportation bill and they "lost" on this one. When our side "lost" on the Transportation bill we were told to "suck it up". Well, it's turn about time kids....

UPDATE: I got an email overnight from Chris Stellar asking that I please note that the emphasis in the quote above from MinnMon was from MDE and not in his diary. So noted.

The Governor Responds

I have, in my virtual fingers, a copy of Governor Pawlenty's response back to the Legislature on his signature of the line item vetoed Bonding bill!

Dear Speaker Kelliher,

I have signed into law, with a number of line-item vetoes, the Capital Investment Bill, Chapter 170, House File 380.

I am very disappointed that the legislature ignored an understanding between my office and legislative leadership and my repeated warnings to abide by the state's longstanding debt limit. It is irresponsible to exceed the "credit card limit" that has been maintained by governors and legislators from both parties for the past 30 years. Doing so could jeopardize our state's strong credit rating and low interest rates. The overall limit is $855 million, invlufinh $60 million already allocated in the transportation bill. The legislature spent well behond this figure.
In addition, this bill reflects misplaced priorities. As just one example, I find it inconceivable that legislators would fund a brass band music lending library and yet provide no funding for a much needed new nursing facility at the Minneapolis Veterans Home.

As a result, I have exercised my line-item veto authority to remedy the situation to the best of my ability under the constraints of the bill as presented. These vetoes reduce the overall amount of general obligation bonding in the bill from $925 million to $717 million.
Reducing the bill to this level reflects my commitment to fiscal discipline and an attempt to prioritize important state projects.

The legislature should keep in mind that upholding the state's three percent debt service limit guideline is important to oir ovall fiscal well-being. Debt service is one of the fastest growing items in the general fund. Based on previously enacted bonding bills, the state's debt is projected to increast $239 million from the 2006-07 budge to the 2010-11 budget.

He then goes on to summarize the line-item vetoes and his recommendations. I will cover those in other posts.

Governor Pawlenty goes to Vegas to make new global warming friends

More from Logical Lady Sue Jeffers

Minnesota has a growing budget deficit combined with an out of control governor and legislators who continue to regulate, mandate, tax and fee its residents. This legislative session promises much more and will continue to be the driving factor for the increased costs for food, gas, energy, health care and education for all Minnesotans.

Last years Renewable Energy Standards bill provided funding and courage to mandate and regulate unsustainable, unproven, unreliable and costly sources of energy. Environmental buzz words make politicians feel good but this type of legislation costs a lot of our tax dollars to pay for these useless good intentions. It should come as no surprise that our legislators, with the help of our governor, are not done yet.

In the State of the State speech Governor Pawlenty proudly proclaimed that Minnesota already ranks near the top in E-85 pumps, wind energy, renewable energy and recycling. We do. Governor Pawlenty said more must be done to reduce our dependence on foreign oil, producing cleaner energy and reducing greenhouse gas emissions. Our republican governor called on Minnesotans to continue to “Americanize” energy production, grow green collar jobs and keep America from becoming an energy hostage.

If we the people aren’t willing to go green on our own, not to worry, the governor and the legislators will “help” us. One of the governor’s suggestions included another costly mandate; increasing the diesel fuel soybean mandate from 2% to 20% by 2015. In the first week of the session House Representatives Hortman, Tschumper; Faust; Hornstein; Liebling; Murphy E.; Loeffler; Morrow; Brynaert; Knuth; Davnie; Hilstrom; Slocum; Bly; Greiling; Paymar; Kahn; Ruud introduced HF 863 calling for the California vehicle emissions standards to be adopted, and updates provided to comply with the federal Clean Air Act.

Not to be outdone, and regrettably not up for reelection, the Minnesota Senate introduced SF 481 authored by Senators Marty; Carlson; Skogen; Doll; and Rummel calling for the similar mandates. Also introduced was SF 2818 calling for establishing principles of a cap and trade program to reduce greenhouse gas emissions, establishing a climate trust fund, requiring studies and appropriating money from the general fund. Yes, THAT $34.5 Billion general fund which could also be used to pay for oh maybe…. roads, bridges and other infrastructure.

The $650 per year out of pocket costs we can expect from this year's gas tax increase will be nothing compared to the legislation signed into law last session and is being considered this session. And just think of all the new ideas that Governor Pawlenty and Harry Reid can come up with together in Vegas with this group.

Gov. Tim Pawlenty will travel to Las Vegas next week to be a keynote speaker at a renewable energy conference that also will feature U.S. Senate Majority Leader Harry Reid, D-Nev.

Pawlenty will address the Power-Gen Renewable Energy & Fuels conference on Tuesday afternoon. More than 3,000 leading players in the renewable energy industry are expected to attend.

Governor Green Jeans Strikes Again!

Yesterday, our "Republican" governor announced a series of big government initiatives designed to asuage his guilt on man made global warming.

Gov. Tim Pawlenty announced several initiatives Thursday designed to encourage solar, wind and other renewable energy projects at the local level and to reduce global warming emissions.
He proposed four changes, including one to authorize local governments to issue $10 million to $20 million in revenue bonds to provide low-interest loans to individuals for "microenergy" projects. Those might include installing solar panels to produce hot water, geothermal equipment to heat and cool homes or businesses, or small wind machines to power homes, farms and schools.

Emphasis mine. With all credit to my favorite state legislator, I have a couple of questions for the Governor.....

1) WHERE in the Republican Party of MN platform does it say government should take money from one group of people and give it to another in order to allow them to buy stuff? (all of Section 1)

2) WHERE in the Republican Party of MN platform does it say that Republicans will grow government by adding yet another state bureaucracy? (all of section 8)

3) WHERE in the Republican Party of MN platform does it say that government should use it's bully pulpit to dictate what people can do in their homes or privately owned businesses? (Sect 2.V and Sect 7.K & L)

Now to be fair to our "Republican" Governor, his proposals have been given favorable reviews FROM THE DEMOCRATS!!!!!!

Sen. Ellen Anderson, DFL-St. Paul and chairwoman of the Environment, Energy and
Natural Resources Budget Division, said any proposals to help homeowners afford energy-efficient projects will be popular among legislators.
"The governor's on the right track; there's nothing bad in what he's proposing, but we just need to do more," Anderson said. She and other legislators are formulating a more comprehensive energy and climate plan, she said.

I can not begin to say just how disappointed I am in the Governor. He is making decisions that will adversely affect middle class Minnesotans the hardest and all of it based on on the belief that something we are doing may or may not be warming the planet (I should note that Man Made Global Warming is not proven science - that many people have come forward lately disproving the claims of people like Al Gore and the rest of the global warming zealots).

It is time for the activists of Minnesota to decide....caucuses are in two short weeks! Are you going to stay home and tacitly support this leftward drift or are you going to show up and take back the Republican Party for conservatives!

Now is the time people.....get busy and get to caucus!

Forecasting Failure

Earlier this year, during the last legislative session, many of us expressed concerns about the Governor spending the projected budget surplus. We all felt that it was best to have that money in hand, rather than being spent while only being "forecasted". Well today our worst fears came true!

Gov. Tim Pawlenty is bracing for bad news when state finance officials release an economic forecast on Friday.
Pawlenty is predicting a hit to the state budget, but says he doesn't know how bad it will be. He says the ailing housing market, credit crunch and high oil prices make him pessimistic.
Many economists, including consultants used by the state, are anticipating a year of slow economic growth in 2008. That would bite into revenue the state is counting on to meet its budget obligations.

Emphasis mine.

Here is a radical thought for the Legislature and the Governor. How about only spending the money that you (the state Government) have IN HAND. That is what the rest of us who live in the real world do!

Pawlenty and Gore to Co-Host Live Earth Concert II

I yield (again) to Logical Lady Sue Jeffers


OK Governor Pawlenty, we know you have jumped on the green band wagon. We got it. We knew it with E-85, we knew it at the Governor's Convention, we knew it with the Renewable Energy Bill, and we knew it with the Global Warming Mitigation Act. We heard you say loud and clear that global warming is “a huge and defining issue of our time.” We got it.

But Governor Pawlenty let me make this really simple for you: you're wrong. The truth is that none of the suggested proposals to stop man made global warming enacted by the state, the nation, or the world, would have any noticeable impact on the climate for hundreds of years, if ever. The truth is no one can prove mankind causes global warming. There are many scientists who will tell you the global warming debate never even started before Al Gore announced it was over.

Pawlenty’s Next Generation Energy Initiative was signed into law earlier this year, it authorized the governor to appoint the Minnesota Climate Change Advisory Group. Assorted special interest groups are well represented and they are charged with rubber stamping various strategies to reduce the state’s greenhouse gas emissions by 80% by 2050. The group also includes the governor’s new buddy, Will Steger, who he refers to as “a Paul Revere-like figure”. It is a wonder that Al Gore was left off this committee.

The Climate Change Advisory Group’s report is due at the Capitol Feb. 8. It will include proposals for setting up a carbon trading market, reducing speed limits and increasing wetlands and forests. We will also see calls for more smart growth, higher fuel taxes and less consumption of fossil fuels. Count on electricity surcharges and more renewable fuels, wind and solar energy subsidies, iincreased subsidies for public transportation and even more restrictions on property rights. We might even see a tax for breathing, to reduce the CO2 of course.

The cost to anyone who uses energy will be staggering. Conveniently ignoring the fact that there is nothing Minnesota could reasonably do which would noticeably impact the climate. In fact there is no proof that these proposals will affect global warming, positive or negative, even if every state in the nation, and every country in the world, adopted them.

So Governor, hear this Conservative loud and clear: the defining moment will be when you find your backbone and lead and govern using conservative principles instead of supporting yet another invented liberal crisis. It would be much more effective if on your trip to the Arctic you would scope out the terrain and figure out the best spot to put the drilling rigs.

Governor Green Jeans

Governor Pawlenty has (in case you haven't noticed) bought into the Global Warming hype hook, line and sinker. Using his pulpit as Chairman of the National Governor's Association he has instituted an initiative to broaden the nation's use of biofuels, regardless of whether they are best for the country or not! He has even gone so far (in defense of his initiative) to attack his fellow Republicans.

He’s hardly alone. At a summer’s gathering with reporters in Washington,
Minnesota Republican Gov. Tim Pawlenty seemed at a loss to explain how
Republicans in Washington could still be quibbling over the reality of global
warming when the party’s governors, including Pawlenty and California’s Arnold
Schwarzenegger, were passing groundbreaking legislation to combat it.

“The false premise of some of the critics is that you’ll wreck the economy,” Pawlenty said, a shot aimed mostly at his own Republican colleagues.

Well now Governor Green Jeans is set to launch (with the help of Governor Schwarzenegger and Georgia's Governor Sonny Perdue) a re-branding of Republicanism - a re-branding that will make Conservatives nauseous.

Fearing additional losses in 2008 among their own ranks, Republican
governors are trying to wrest control of the party’s re-branding campaign away
from their Washington brethren....

Next month, a small group of governors spearheading the effort will gather
in Atlanta to begin exploring new policy positions on energy, conservation,
education and health care that they believe are more attuned with public
concerns and doable at the legislative level.

The summit also will include a host of senior aides with expertise in policy, politics and communications who will be vital to translating the broad ideas into substantive legislative advances on the ground quickly.The tug of war between the party’s state and federal factions reflects continuing disagreement within the party about how to regain voter appeal and avoid another round of crushing Election Day losses.

What these governors don't seem to get is that the people WANT a candidate of principle. If you take a look at the 2006 elections, principled candidates like Michelle Bachmann won where other Republicans lost. Governor Pawlenty barely won because most of his base stayed home on election day! Every single one of the issues that these Governors are proposing are issues that are to the left of where a principled Republican would stand. They are proposing more spending on education, instead of accountable spending on education, "universal" health care - expanded S-CHIPS spending for people who are far from poor.

They are calling on "moderation" of ideals and principles instead of talking about principles and what is best for the country! Governor Green Jeans and his cohorts have shown that they don't care about anything other than winning elections. They don't care about the tax payers, they don't care about principles...all they care about is winning elections...to make sure they don't lose anymore Governors seats!

They are willing to sell out their principles and our wallets in order to retain and even gain power. Is that what you, as a voter, want? Or do you want a politician that stands (as Senator Paul Wellstone did) on his or her principles.

Selling it HARD

The DFL Leadership in the House and the Senate (and their various media mouthpieces) are certainly working very hard to sell the "necessity" of a special session.

Political shifts, changes in personalities and the I-35W bridge collapse
effect have re-energized a group of east metro political leaders whose interest
is in our region's long-range transportation plan. We are glad the group, known
as the Eastern Transportation Alliance, is promoting a vision of how we will get
around today, tomorrow and a decade or two down the proverbial road.

"This is a turning point for us,'' state Sen. Kathy Saltzman, DFL-Woodbury,
told us last week.

"Are we going to be at the table? Or is that train going to pass right
by?"

Did you catch it? The "T" Word????

The Star Tribune just comes straight to the point with the headline "Legislators PLEAD for a special session"

Telling him it is time “to stop the word games,” House and Senate leaders
on Tuesday fired a salvo at Gov. Tim Pawlenty, imploring him to call a one-day
special legislative session for next week to deal with flood relief and
reconstruction of the collapsed I-35W bridge.

In the letter, House Speaker Margaret Anderson Kelliher and Senate Majority
Leader Larry Pogemiller appear ready to drop the idea of a more
comprehensive special session to deal with larger issues like property tax
relief and a bonding bill and to focus exclusively on the two disasters
which struck the state in August. They also suggest they would consider
abandoning the idea of a gas tax increase, using $370 million in existing
funding to address disaster needs.

Emphasis is mine. That is what every conservative in the state KNEW the DFL was initially going for when the calls for a special session arose. There was talk of tying LGA for Minneapolis and St. Paul to flood relief funding in Winona! Now that the governor has "loosened" the purse strings (emergency or rainy day fund) now all of a sudden the Governor is the one coming to the rescue while the House and Senate DFL Leadership looks on - locked in partisan wrangling for more money for "the Cities". While they fight for more money for their shrinking constituencies, the outstate voters are seeing a Governor do what they are supposed to do lead!

As I said before, I saw the game that the Governor was playing. I was surprised that more "politically astute" people than I, didn't see trap and fell right into it. However I can not say that I am unhappy with the results. Well played Governor Pawlenty!

Econ 101 taught by the King of Minnesota Economics

King Banaian from SCSU Scholars has a couple of very interesting posts up regarding taxes. Given that Professor Banianan is a professor of economics the posts are enlightening indeed.

"The IRS has released its new Statistics of Income Bulletin, and it contains some interesting data on who pays taxes in the country and how much.
Preliminary data for tax year 2005 indicate that taxpayers filed 134.5 million U.S. individual income tax returns, an increase of 1.6 percent from the preliminary estimate of 132.4 million returns filed for tax year 2004. Adjusted gross income (AGI) increased by 8.9 percent from the previous year to $7.4 trillion for 2005 and taxable income increased 9.5 percent to $5.1 trillion. The alternative minimum tax rose 31.6 percent to $15.9 billion, while total income tax increased 11.8 percent to $928.3 billion. We're making more and paying a WHOLE lot more; this explains part of the decline in the budget deficit. And who is paying it?
For tax year 2004, taxpayers filed 132.2 million returns, of which 89.1 million (or 67.4 percent) were classified as taxable returns. This represents an increase of 0.2 percent in the number of taxable returns from tax year 2003. Adjusted gross income (AGI) on these taxable returns rose 9.0 percent to $6,266 billion, while total income tax showed the first increase in 4 years, rising 11.2 percent. Also for the first time in 4 years, the average tax rate for taxable returns rose, increasing 0.3 percentage points to 13.3 percent for 2004. Taxpayers with an AGI of at least $328,049, the top 1 percent of taxpayers, accounted for 19 percent of total AGI, representing an increase in income share of 2.2 percentage points from the previous year. These taxpayers accounted for 36.9 percent of the total income tax reported, an increase from 34.3 percent in 2003." (emphasis added)

One percent of the taxpayers are responsible for 36.9% of the total income tax reported. What was that about the "rich" not paying their fair share?????

What about Minnesota?

"Taxpayers in the top decile (incomes of $102,427 and over) bore 36.8 percent of the total tax burden while having 38.8 percent of total income. By tax type, taxpayers in the top decile paid 52.2 percent of the individual income tax, 28.0 percent of the consumer sales tax, 24.5 percent of the gross residential property tax, and 26.6 percent of business taxes. This is important to understand. The income tax is plenty progressive, but the DFL is proposing returning the top income tax rate to 8.5%. They will argue that this is because the effective tax rate on the top 10% of income is declining. But that's because the sales and property taxes are being shifted as rich individuals are able to move income around to avoid taxation. Those us in the second-to-fourth deciles end up paying more because we have not the same means to shift where we receive our income."

Again...what was that about "fair shares"?????

The other post was complimentary to the above post.

"Who says state government doesn't have enough resources? Not the respondents to the Minnesota Citizen Compass report.
In this survey, 54% percent of Minnesotans stated that the state’s tax burden is too high, 42% believe it is just right and 2% believe the state’s tax burden is too low.Meanwhile, 47% percent of Minnesotans report taxes and fees are growing faster than their income, 36% report their taxes and fees are growing (but not as fast as their income) while 9% reported taxes are going down compared to their income. Of those who reported their tax burden is increasing, 84% identify property taxes as the leading cause of those increases.But you can't do many good things! The answer from the survey is, you don't need to.
79% of Minnesotans believe the State Legislature should determine how much money is available, and then decide what programs to fund, compared to 18% who believe the State Legislature should figure out how much is needed and then tax us appropriately. The intensity of opinion is most strongly felt by those who believe the state should spend what it has, not what it wants.Support for this fiscal approach is consistent among demographic groups. For instance, strong majorities of Democrats (79%), liberals (75%), government employees (73%) and residents of core cities (75%) all supported the position of spending based on the resources available. Even those Minnesotans who believe that health care (84%) and education (73%) are among the two most important issues facing the state agree that the State Legislature should budget based on what they have, not what they want."

The people of Minnesota realize what the DFLers in St Paul refuse to admit. Minnesotans are over-taxed and they are fed up! It is well past time for Governor Pawlenty and the House and Senate Republicans to draw a line in the sand and say "NO" to all the new taxes and all the new spending in the budget and to return a portion of the surplus to the over-taxed citizens!

Ah the oh so tolerants

on the left strike again. The Man made global warming proponents tell you that there are no scientists who dispute their claims and then when one speaks out.....

"Timothy Ball, a former climatology professor at the University of Winnipeg in Canada, has received five deaths threats by email since raising concerns about the degree to which man was affecting climate change.
One of the emails warned that, if he continued to speak out, he would not live to see further global warming.
"Western governments have pumped billions of dollars into careers and institutes and they feel threatened," said the professor.
"I can tolerate being called a sceptic because all scientists should be sceptics, but then they started calling us deniers, with all the connotations of the Holocaust. That is an obscenity. It has got really nasty and personal."

But this is the money line of the whole article.

"Richard Lindzen, the professor of Atmospheric Science at Massachusetts Institute of Technology - who also appeared on the documentary - recently claimed: "Scientists who dissent from the alarmism have seen their funds disappear, their work derided, and themselves labelled as industry stooges.
"Consequently, lies about climate change gain credence even when they fly in the face of the science."

Thank you Al Gore. For those of you on this side of the pond who want to see the BBC special "The Great Global Warming Swindle", Charles Johnson at LGF has a link to the video.

Vision Casting

A lot of people are calling former New York City Mayor Rudy Guillani the "front-runner" in the Republican Presidential sweepstakes. After this speech I am starting to see why. (H/T Cap't Ed)

"Mayor Giuliani is calling on the Republican Party to redefine itself as "the party of freedom," focusing on lower taxes, school choice, and a health care system rooted in free market principles....Delivering a policy-driven overview of his presidential platform yesterday, Mr. Giuliani outlined the agenda in a Washington speech before a conservative think tank that sought to make clear distinctions between his vision and that of the Democrats, if not his rivals for the Republican nomination in 2008. The former New York mayor's proposed redefinition of the Republican platform would signal a shift away from any focus on social issues, on which Mr. Giuliani is much less ideologically aligned with the party.
Mr. Giuliani reserved his strongest criticism yesterday for Democrats, but he also said the government's handling of the war on terrorism had done "damage" to America's reputation abroad...Mr. Giuliani talked about taxes, education, and health care, saying they are areas where Republican ideas trump those of Democrats. Democrats, he said, would want to raise taxes to pay the higher costs of a war. "That shows a dividing line, and to me, a misunderstanding of how our economy works," Mr. Giuliani said. He said that while Republicans believe that the American economy is "essentially a private economy," Democrats "really believe, honest, that it is essentially a government economy."
Citing the tax cuts of President Kennedy, Mr. Giuliani said the Democrats' move away from a low-tax policy was one reason he left the party to become an independent and later a Republican."

The Republican Party needs to redefine itself as the Party of Freedom! That's pretty heady stuff. Ed called it "Reaganesque" and it sure seems like he is heading in that direction.

Contrast that with the remarks that Governor Pawlenty (rumored to be a potential Vice Presidential nominee) said yesterday to the National Governors Association.

"The Republicans have to articulate and present an agenda that reassures people and meets those concerns," he said. "And I don't think we've done that very well in the last three to five years."
He called it a time for the party to re-evaluate and "make sure people hear our message about how we're going to improve schools, how we're going to make health care affordable, how we're going to have a better environment and energy future … Republicans have been in neutral on those issues, at least in the public's perception." (emphasis mine)

On one hand we have a candidate saying that Republicans need to differentiate themselves from the Democrats and on the other we have a candidate saying Republicans need to be more like the Democrats....Care to guess which one is clueless as to why he almost lost his re-election bid last November.....

The Minnesota GOP is doomed to mediocrity as long as it's leadership (including the top of their ticket) remains oblivious to the fact that the electorate wants a choice in the matter - not more of the same.

Lesson to be learned.

There is a lesson to be learned in this story. Will the Governor and Legislature listen?

"D.C. bar owners say business has fallen significantly since the city's smoking ban was implemented almost two months ago. In contrast, restaurants say they have fared relatively well -- with little or no drop in sales. Their biggest complaint is the pile of cigarette butts lining their front sidewalks. Bar owners say that smokers no longer leave the office for lunch and a smoke, and that late-night customers don't stay out as long or they go out in Virginia, where they can smoke inside. The lunch and afternoon business at Adams Mill Bar and Grill in Adams Morgan fell so significantly that owner Darrell Green eliminated lunch service. He used to open at 11 a.m. Now, the doors open at 4 p.m. "

Business down, hours reduced, workers hurt.....TAX REVENUES DOWN!!!!!

Hello....is anyone in St. Paul listening?????