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Thursday, November 30, 2006

Grand Forks Herald Open Minded Towards Minnesota Tax Rebate

The Grand Forks Herald had an interesting story as the top story on the front page today.  They’re discussing whether or not Minnesota should rebate part of the tax surplus. 

Whether to rebate part of the nearly $2.2 billion state budget surplus will be among the hot topics when Minnesota legislators return to St. Paul on Jan. 3. The surprisingly big surplus - double what many observers expected - brought on the question about whether to send taxpayers checks as happened during the administrations of Govs. Arne Carlson and Jesse Ventura.

I find it interesting that the Herald has discovered the tax rebate.  Last spring when it became apparent that North Dakota tax payers were being taxed too much the Herald had a different story to tell:

Government has promised a healthy chunk of the state’s money away

Rising Medicaid bills, a pay boost for government workers and Gov. John Hoeven’s promised increase in aid to local schools already are expected to take a healthy chunk of the state’s budget surplus, officials say….

Jodee Buhr, director of the North Dakota Public Employees Association, said the group has not settled yet on a pay recommendation of its own. The NDPEA will push for higher salaries, retention of the health benefit and a separate money pool to relieve salary disparities between jobs, Buhr said.

“We‘re going to look for a percentage that we think is fair,” Buhr said.

State employees receive health coverage for themselves and their families without having to contribute a portion of the monthly premium.

In July the Herald did their best to discourage the tax payers from thinking they’ll ever see their money.

A state worker pay plan has joined the competition for a slice of North Dakota’s budget surplus, one of several spending ideas that already are being discussed six months before the Legislature meets.

The plan would increase state employee pay by 3 percent next year and 4 percent in 2008, at a cost of about $17.5 million over two years.

It includes $5 million for agency pay adjustments and would keep fully paid health insurance coverage, which now costs $554 monthly per worker for a family policy. State workers do not contribute a share of the plan’s cost, and Hoeven has promised to include the benefit in his budget recommendations to the 2007 Legislature.

Last year, the Legislature approved a 4 percent pay increase for state workers that took effect July 1, 2005, and a second 4 percent rise that takes effect next month. Lawmakers also approved $1.5 million for pay adjustments for the Department of Corrections and Rehabilitation, and close to $200,000 for the Highway Patrol.

North Dakota’s budget surplus is well over $200 million, and state agencies and interest groups with suggestions on how to spend it are aggressively advancing their ideas, he said.

It’s not too late to talk to your state representative and tell them that it’s our money that the government took.  We want it back.  If the state spends the surplus they’ll be looking to spend even more money the next time around.

The Governor’s rebate plan is too little and structured wrong.  You can read about it here. It’s my opinion that if the Governor’s property tax reduction plan passes the local taxing districts will raise the taxes they levy and spend the money.

Comments

Avatar for WOOF

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WOOF on November 30, 2006 at 11:18 am
Avatar for Robert Perry

I’d like a rebate, but personally a permanent tax cut sounds better for a portion.  I’d also like to see temporary surpluses translated into better infrastructure (let’s pour the roads a bit thicker, lads!) and retiring debt ahead of schedule.  It could make the next lull in tax receipts a bit more bearable!

Robert Perry on November 30, 2006 at 11:21 am

I think the Grand Forks Herald is nothing more than a leftist rag. Mike Jacobs point of view are no where near the populace of the Grand Forks Area, except if your a liberal college professor at UND.

I am considering stopping my subscription because I think Jacobs is a horse bleep editor.


check out Goon’s World

http://ndgoon.blogspot.com/

Goon’s North Dakota Red Neck

http://redneckndgoon.blogspot.com/

goon on November 30, 2006 at 11:21 am

I’d like a rebate, but personally a permanent tax cut sounds better for a portion.  I’d also like to see temporary surpluses translated into better infrastructure (let’s pour the roads a bit thicker, lads!) and retiring debt ahead of schedule.  It could make the next lull in tax receipts a bit more bearable!

Amen to that.


check out Goon’s World

http://ndgoon.blogspot.com/

Goon’s North Dakota Red Neck

http://redneckndgoon.blogspot.com/

goon on November 30, 2006 at 11:25 am

Paying off the debt early means that they will either a) borrow more or b) spend the money they were using for payments.  In neither case is the taxpayer better off.

Rebate the surplus and as Mr. Perry states, cut the tax rates.


The Debate is over!  Global Whining has been confirmed.


The Whistler's signature
The Whistler on November 30, 2006 at 11:56 am
Avatar for Robert Perry

Whistler, you’ve got a point; that’s why guys LOTS wiser than me noted that the price of liberty is eternal vigilance. 

In whatever course is taken, avoiding an ever larger portion of money in taxes requires the wisdom to know what really needs to be done, and wisdom to go about the best way of doing so.  I simply tend to believe that one generally cannot do things more cheaply by paying interest instead of paying cash.  You are quite right, though, that eliminating this will necessitate a battle in the future to hold down spending.

Eternal vigilance.

Robert Perry on November 30, 2006 at 12:07 pm

OK Robert, since we’re dreaming.  We’ll approve early payment of debt and a tax cut reflecting the surplus and the savings on payments at the same time.


The Debate is over!  Global Whining has been confirmed.


The Whistler's signature
The Whistler on November 30, 2006 at 12:29 pm

Here is an idea take less money in taxes then. Just because the state is at a surplus doesn’t mean we have to throw money around, how about give us our money back.


check out Goon’s World

http://ndgoon.blogspot.com/

Goon’s North Dakota Red Neck

http://redneckndgoon.blogspot.com/

goon on November 30, 2006 at 02:58 pm
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