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Wednesday, August 13, 2008


When Will Governor Hoeven Get Behind Tax Relief In North Dakota?

By Rob on August 13, 2008 at 07:09 am
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That’s a point made by one Nick Payne in the Grand Forks Herald today:

The average person in North Dakota understands that the governor really has no impact on the overall economy. The most the governor of a state can and should do is get out of the way of the economy, and let the people keep more of their earnings.

The governor touts the number of new jobs created in North Dakota. I wonder if his math includes the more than 2,500 new full-time equivalent state jobs that have been created under his watch? It is easy to create jobs when you are simply taking tax money and converting it into bureaucratic positions.

One thing the governor fails to talk about is the fact that when he came to office, the state collected less than $400 million via the combination of personal and corporate income taxes. According to his own Office of Management and Budget numbers, the corporate and personal income taxes will bring in more than $1 billion in the 2009-2011 biennium. That’s more than double what they were in the 2001-2003 biennium.

The governor has gone on record — but has not taken a hard-line position — against the proposed Americans for Prosperity initiated measure to cut the state income tax. He has insinuated that he may come forward with his own income tax cut. That’s great, but when? If Hoeven has a secret plan to cut the state income tax let’s hear it.

Instead of coming out with a competing plan, Hoeven should do what former Gov. Ed Schafer did before being appointed secretary of agriculture and support the halving of the personal income tax and a 15 percent reduction of the corporate income tax.

I posted on Gov. Hoeven’s “secret” plan for income tax relief here, and the fact that he’s even talking about plans to cut taxes (even if he’s not releasing any specifics) tells us that he’s worried about the AFP initiated measure mentioned above passing.

Though why an allegedly Republican governor would be worried about taxes getting cut in a state that’s got a billion dollar budget surplus is beyond me.

Does this tick you off? Click here to email your elected representatives right here on Say Anything, or comment below.

Comments

Avatar for WhatTha?

My guess is that Hoeven will roll out (with grand fanfare) a “targeted” tax cut that he’ll try to sell as tax reform, when it really isn’t.  This way, he can get the accolades of the editorial pages for his “vision” without really doing anything.

The people of our state need to take action this November and keep the money in their own pockets by voting “YES” on the tax cut initiative and Measure 1 (the permanent oil trust fund).

WhatTha? on August 13, 2008 at 09:00 am
The Whistler

John Hoeven is a big government friend of the bureaucrats.  He couldn’t care less about people who don’t work for the state.

1% of Americans pay 40% of the income tax.
5% of Americans pay 60% of the income tax.
10% of Americans pay 70% of the income tax.

The Whistler's signature
The Whistler on August 13, 2008 at 09:07 am
Avatar for ec99

When ND went from a personal income tax system based on a percentage of Federal tax to a bracketed system, it was supposed to be revenue neutral.  What happened?  Well, I for one began paying a lot more.

ec99 on August 13, 2008 at 09:11 am
The Whistler

I looked into that and couldn’t find any smoking gun. 

However it sure seems like the income tax revenues surged when that change went into effect.

1% of Americans pay 40% of the income tax.
5% of Americans pay 60% of the income tax.
10% of Americans pay 70% of the income tax.

The Whistler's signature
The Whistler on August 13, 2008 at 09:14 am
Avatar for ec99

“I looked into that and couldn’t find any smoking gun.”

The only smoking gun would be anecdotal evidence; taxpayers saying what percentage they now pay, versus what they paid under the old system of 14%.  This past year I paid about 18% to ND.

ec99 on August 13, 2008 at 09:18 am
The Whistler

with the child tax credit I don’t pay a lot in federal taxes, but I sure do in state taxes.

One thing is that we got snookered out of the Bush tax cuts with the Hoeven plan.

I have to think that there would be NO amount of money that the state could have that Hoeven and co would think it was appropriate to return to the taxpayers.

1% of Americans pay 40% of the income tax.
5% of Americans pay 60% of the income tax.
10% of Americans pay 70% of the income tax.

The Whistler's signature
The Whistler on August 13, 2008 at 09:28 am
Avatar for ec99

“I have to think that there would be NO amount of money that the state could have that Hoeven and co would think it was appropriate to return to the taxpayers.”

As I’ve said before, the mindset of all governments is that the money people earn is the property of the government, which allows us to “keep” some of it.  They are not going to return to us what they believe is theirs.

ec99 on August 13, 2008 at 10:53 am
Avatar for ec99

” He has insinuated that he may come forward with his own income tax cut. That’s great, but when? If Hoeven has a secret plan to cut the state income tax let’s hear it.”

The big problem between a plan proposed by the governor, and one initiated and passed by voters, is that the former is really just a promise.  The legislature has the power to follow through on it.  And, having watched the dynamic between Republican legislature and Republican governor in ND for well over a decade, a tax cut is no sure thing.  With an initiated mesure it is.  Further, the Legislature can at any time in the future rescind the cut; i.e., the cut would be certain for just one biennium.

ec99 on August 13, 2008 at 11:49 am
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