Where Did You Hear It First?

Andy Post at MDE passes on the House GOP’s debunking of the DFL and media’s (pardon the redundancy) LGA myth list:

-Since 2010, property taxes have grown due to other factors (economic growth, property value increases, school levy increases) by $1.9 billion or around 68%. Between 2000- 2010, statewide Taxable Market Value increased 142%.

We noticed this hasn’t changed one iota last year.

-During the 1990′s LGA was increased and property taxes still increased

-The wealthy absolutely pay their fair share:

The top 20% (those with household incomes over $90,000 per year) pay nearly three-quarters of the income tax while the bottom 20% pay nothing and even get something back.

The top 5% of households (those with household incomes over $183,000 per year) pay about 43% of the income tax.

The top 1% of households (those with household incomes over $430,000 per year) pay about 25% of the income tax.

The good news – if the GOP gets its way?:

-Here’s where the tax cuts would be felt by tax year 2014:

Married couple with 2 dependents:

Income of $50,000 will see a decrease of 11.2%.

Income of $75,000 will see a decrease of 10.1%

Income of $500,000, will see a decrease of 1.7%

Head of household with 1 dependent

Income of $25,000 will see a decrease of 38.1%

Income of $50,000 will see a decrease of 9.9%

Income of $500,000 will see a decrease of 1.2%

Single filer with no dependents

Income of $25,000 will see a decrease of 11.2%

Income of $50,000 will see a decrease of 8%

Income of $75,000 will see a decrease of 6.5%

Income of $500,000 will see a decrease of 0.8%

This was the part I loved; according to a 2003 report from the State Auditor…:

Cities above the median in LGA per capita spend 42 percent more on total current expenditures than those below the median LGA per capita.

Is this because their bills are 42% higher? Or is it because

Cities that received the most LGA per capita had much lower taxes per capita.

Scraaaaatch.

You mean – Local Government Aid merely means everyone else must be Happy To Pay For A Better Minnesota so that people in Minneapolis, St. Paul and Duluth can happy to pay “much less” per capita?

That hardly seems fair…

Cities above the median in LGA per capita spend a greater percentage of resources on non-essential services than cities below the median LGA per capita.

LGA – once intended to help poor rural cities afford the essentials of modern life, like sewage treatment and schools – has become a way for cities to pay for the luxuries, since the rest of the state pays for the necessities.

3 thoughts on “Where Did You Hear It First?

  1. Megan McCardle notes that the income of the rich fluctuates more than the income of the middle class:
    http://www.theatlantic.com/business/archive/2011/03/the-rich-really-are-different-their-incomes-fluctuate-more/73170/

    “This is one of the reasons that we can’t fix all our budget problems with higher taxes on the rich–if we do that, revenues are going to collapse dangerously every time there’s a recession.”

    There are other implications to this Dayton-style “soak the rich” policy of raising state revenues via taxing the wealthy.
    1-Wealth from investment is portable. It is easier for the wealthy to move to another state & take their income & spending with them.
    2-If state income ratchets up during a boom time, based on the increased taxes paid by the wealthy, and then crashes when the economy crashes, this results in regressive taxes as the state does what it can to keep revenue high when there are fewer high-income dollars to tax.

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