Paul Demko, writing for Finance and Commerce, reaches many of the same conclusions that I reached on Tuesday’s series fact-checking the Dayton budget “plan- and comes up with one that I missed :
The final plank of the DFLers tax-the-rich proposal involves a crackdown on tax deadbeats. According to the Office of the Legislative Auditor, roughly $1 billion in taxes goes uncollected each year. During the last biennium, the state revenue agency spent $20.2 million to collect $133.7 million in outstanding taxes, a return rate of $6.60 for every $1 spent. Dayton’s plan counts on collecting an additional $400 million in unpaid taxes by upping the enforcement budget to $60.6 million, theoretically netting the state approximately $340 million.
But financial experts see a problem with that calculation: The rate of return on enforcement activities is almost certain to drop as more tax scofflaws are chased down.
Demko, being a liberal partisan, pays the plan his complients and takes a whack at Emmer as well. But our bottom lines are pretty much similar:
The bottom line on Dayton’s proposed plan to make the state’s richest residents pay their fair share of taxes? It’s unlikely to result in $4 billion worth of additional revenues for the state.
Now, the DFL’s been howling for months about Emmer’s lack of a “plan”; Demko is no exception:
Even so, financial experts give the DFLer high marks for actually presenting a reasonably detailed plan for solving the looming cash crunch. By contrast, Republican nominee Tom Emmer has yet to provide a credible breakdown of how he’d balance the state’s books, although he’s ruled out tax increases.
Of course, the party out of power doesn’t need a complete plan with perfectly-dotted-I’s and crossed T’s. They need a vision that convinces people they have a better idea. The plan matters next February.
Still, Dayton’s not getting quite as smooth a ride as one might expect.
Gary Gross also commented on Demko’s piece.
The reporters who’ve been reflexively characterizing Sen. Dayton’s plan as detailed didn’t do their homework. In fact, I’d argue that serious people couldn’t characterize Sen. Dayton’s submission as a plan, much less a detailed plan.
We’ll keep working on it…
“They need a vision that convinces people they have a better idea”
I have some pretty pro-DFL relatives. They, while maintaining an anti-Emmer stance, admit the Dayton budget “plan” won’t work. Perhaps they can feel a Cold California coming on with a Mark Dayton / Yvette Cole-Driscoll-Machupichu win.
Troy;
It’s heartening to hear that there are some intelligent libs out there.
Unlike some of my co-workers and a couple of neighbors that are Dayton sycophants, that believe him. But then, they also still believe the messiah’s crap.
It will be real interesting to see what happens after January 1 when, as commissioned sales people, my co-workers actually see the effect of Obumbler’s idiocy on their checks. No amount of illustration and discussion, from the conservative majority in the office, can convince them otherwise. They still believe what the left media tells them.
Don’t worry. Dayton’s special excise tax on unicorns will more than compensate for the difference.
Kermit don’t forget the tax on pixie dust, fairies, Leprechaun gold (I mean with all the Irish pubs around here they got to have a good stash of gold, so good, apparently, G.Gordon Liddy has been spotted in the area dropping his gun looking for it) and trolls.
Not trolls. They’re on the Soros payroll.
It will be real interesting to see what happens after January 1 when, as commissioned sales people, my co-workers actually see the effect of Obumbler’s idiocy on their checks.
Not only commissioned sales people, but anyone who gets health benefits from their job. All money your company contributes towards your health benefits becomes taxable income starting 1/1/11. If you’re paying $250/mo towards health insurance thru your work, it is very likely that your work is paying $750-$1000. That means your taxable income will go up $9K-$12K. I highly doubt a lot of people will realize they will need to change their withholdings to not get hit with a hefty tax payout in 2012. I’m actually kinda surprised they didn’t push this off for one more year, since most non-political-junkie type people will still be able to pin the blame on Obama for raising their taxes.
“All money your company contributes towards your health benefits becomes taxable income starting 1/1/11.”
I don’t think that’s true. The value will show up on your W2’s as non-taxable income.
From http://www.kiplinger.com/businessresource/forecast/archive/health-care-reform-tax-hikes-on-the-way.html?si=1
3. A requirement that businesses include the value of the health care benefits they provide to employees on W-2s, beginning with W-2s for 2011. The amount reported is not considered taxable income.