Let's not get carried away with Minnesota budget surplus

Pioneer Press ^ | 3-2-14 | Ed Lotterman

[TurboZamboni]

Along with several other states, Minnesota has returned to a budget surplus after some sharp deficit years. Whether that is because of luck or good policy is a matter of divided opinion. But there reportedly is about $1 billion on the table.

Already there are many suggestions on how to "use it" -- ranging from tax cuts to new spending. This is premature, fiscally irresponsible and dangerous to the state economy. This surplus is not a long-lasting "structural" one, and that should be taken into account.

We should first build up a reserve fund for the day we go back to running deficits (which we will). But we really don't have a good statutory way to do that. We should.

The problem is an old one. Finances vary sharply with overall economic activity for virtually every state government as well as for our federal one. This is true both for taxes and spending.

Minnesota, with its heavy dependence on a progressive income tax and on a sales tax that exempts necessities like food and most clothing, has especially volatile finances.

[TurboZamboni]

Last week the House Taxes committee passed some $500 million in tax cuts, including a repeal of the three business-to-business taxes that drew the ire of the state's job creators.

The Dems raised taxes by 2 billion last session.

So the taxpayers get a 25% "break" on the reaming they were set to endure. Yippee.

[andyk]

Nicest thing about Moorhead is how close it is to Fargo.

[sasquatch]

Jerry Brown and friends are planning to spend the CA budget surplus. They don't seem to remember that we're something like $300 billion in the hole.

[jsanders2001]

Its free spending day for politiians when they rape their citizens and take around 35 % of their income with income tax and local taxes. You know they won’t refund it either of hold it tp pay future defiiirt Add to that the extra 33 % Obamacare is cost you plus all. The extra fees and taxes you spend on utilities, vehicle registration fees, oil dispsal fees, etc...and it becomes apparent 0 doesn’t want Americans to own homes and only barely get by as his economic policies make food prices and luxury taxes continue to rise. I’ve noticed several snacks rise in price lately, particularly chocolate.

[jsanders2001]

Its free spending day for politiians when they rape their citizens and take around 35 % of their income with income tax and local taxes. You know they won’t refund it either or hold it to pay future deficit Add to that the extra 33 % Obamacare is cost you plus all. The extra fees and taxes you spend on utilities, vehicle registration fees, oil dispsal fees, etc...and it becomes apparent 0 doesn’t want Americans to own homes and only barely get by as his economic policies make food prices and luxury taxes continue to rise. I’ve noticed several snacks rise in price lately, particularly chocolate.

^ hit post button accidentally

[Dapper 26]

There is no such animal as a government surplus. It is overtaxation and the money should be returned to its rightful owners before it was stolen by the state.

[TurboZamboni]

The DFL like to believe eveyone thinks stealing all your wheels and then giving you back three is a good deal.

Funny how they measure a “good economy” by how much the government has collected. Why not just take it all and declare it the “greatest economy ever” ?

[DPMD]

Wonder if this author had the same message when Clinton announced the great (phony) surplus at the end of his reign?

[andyk]

Good point. Probably not.

[andyk]

There is no such animal as a government surplus. It is overtaxation and the money should be returned to its rightful owners before it was stolen by the state.

Very well said.

[TurboZamboni]

Minn. Republicans want taxpayers to get $1.2B surplus, unveil session mantra: “give it back”

http://www.startribune.com/local/247854651.html