Hann, Stensrud, Loon Decieve at League of Women Voters Forum

League of Women Voters Legislative Forum for Eden Prairie, Minnetonka and Hopkins September 29th at Minnetonka City Hall.


House- 42B

Ray Daniels D
Jenifer Loon R

Senate SD42
Ron Case D
David Hann R


House 42A

Maria Rudd D
Kirk Stenstrud R


More Deception the “Minnesota’s Business Tax Rate Too High” Myth: Republicans Hann, Loon and Stensrud mislead at League of Women Voters Forum


It’s hard to fathom that all three of them would mislead the public. They argued the same thing Pawlenty has been saying for two terms as Governor. We are a high tax state in general, for personal taxes and business taxes that harm businesses from thriving here.

Here’s how the Center for Budget and Policy Priorities explains it:

Government and independent researchers have long pointed out that the top statutory corporate tax rate is an incomplete measure at best of the burden of corporate taxes. It does not take into account the generous depreciation rules, exemptions, deductions, and credits (some of which are sometimes termed "loopholes") that corporations may be eligible for.

Not one of the Republican candidates mentioned these facts. But, Ray Daniels did point out that what matters ultimately is not the tax rate, but the final tax bill.



http://www.mn2020.org/

According to a new article in MinnPost Minnesota stacks up pretty good amongst its competitors.

“Still, economists do compare states by this measure because it reflects the actual taxes paid after businesses took advantage of various deductions and opportunities to pass expenses along to customers. The Ernst & Young report calls it the "total effective business tax rate."

Here too, Minnesota stacks up favorably. Its total effective business tax rate for 2009 was 4.3 percent. That compares with 8.2 percent for North Dakota, 4.9 percent for South Dakota and 4.6 percent each for Iowa and Wisconsin. The national rate was 4.7 percent.

MN Business Tax rate 4.3 percent. That compares w/ 8.2% for North Dakota, 4.9% for South Dakota & 4.6 % Iowa & Wisconsin. The national rate 4.7%

http://www.minnpost.com/stories/2010/08/25/20854/how_does_minnesota_stack_up_in_business_taxation_pretty_well_it_turns_out

Tax Foundation 2010
Business Tax Climate Index


Minnesota 4.44
South Dakota 7.42
North Dakota 5.04
Wisconsin 4.54
Iowa 4.23
Illinois 5.01


http://www.taxfoundation.org/files/bp59.pdf


Minnesota has the eleventh most progressive (or least regressive) state and local tax system in the nation according to MN2020.


http://www.mn2020.org/index.asp?Type=B_BASIC&SEC=%7B85F249A8-AF2F-465C-B05E-7E8C946BA9A7%7D&DE





Hann, Stensrud and Loon claim Minnesota losing small businesses to our neighboring states because of high taxes, bad business climate? Is this just deception on their part?


According to Susan Schmickle of Minnpost the problem isn't business taxes it's property taxes. The next burden on businesses are sales taxes. The most confusing variant that goes into the tax evaluation are things like education, services like police and fire protection, water and sewer infrastructure, transportation amenities, etc. How much do businesses pay in state and local taxes for every dollar’s worth of government services they receive, Schmickle asks.

"The Ernst & Young report calls it the "total effective business tax rate."

Here too, Minnesota stacks up favorably. Its total effective business tax rate for 2009 was 4.3 percent. That compares with 8.2 percent for North Dakota, 4.9 percent for South Dakota and 4.6 percent each for Iowa and Wisconsin. The national rate was 4.7 percent.

By this measure, Minnesota is 15th from the bottom state in business taxation."

One example is the often-cited data from the Tax Foundation, a conservative think tank in Washington, D.C. Its most recent ranking of states [PDF] counts Minnesota among the 10 states with the worst business tax climates. One factor in the foundation's decision to rank Minnesota 43rd among states was the state's individual income tax."


http://www.minnpost.com/stories/2010/08/25/20854/how_does_minnesota_stack_up_in_business_taxation_pretty_well_it_turns_out




More Deception “School Choice” codeword of Republicans means no social equality, no government control, no sexual education.

Essentially they want to eliminate equality in the public school systems, social acceptance of GLBT, early education in safe sex. This is why David Hann supports vochures for private and religious schools, which would have the ability to turn down any student, and not follow the same educational programs as public schools, but still get public school funding. This is unconstitutional.

Hann signed their questionaire in 2002 to abide by their precepts: Edaction.org and Edwatch.org's mission is to eliminate what they call government programs:

Here are some of their precepts:

Accessible, nonpublic education without government interference is essential to a healthy education system. (that means they would turn down federal funding for schools because it would mean they would have to abide by federal programs.)

Good education is most importantly about acquiring knowledge and understanding, not about inculcating government-approved values and beliefs.

Early childhood care from birth to five is best determined by the child's parents. Establishing ideological and political child-outcomes and universal preschool is a dangerous expansion of government power over families.

Good education accurately teaches the political heritage of western civilization, including the Judeo-Christian worldview, as America's historical foundation.

. Early Childhood Professional Development - (HS p. 324)

Current - $496,000 Governor - $0 EdWatch - $0
EdWatch strongly agrees with and very much appreciates this cut from the governor's budget. This is the next step to licensing and unionizing childcare workers. There are big problems with the group certifying at least one of the early childhood degrees for which the TEACH program pays. The Child Development Associate credential was created and is certified by the National Association for the Education of Young Children (NAEYC). The CDA requires use of NAEYC's radical Anti-Bias curriculum, which deals with topics that have absolutely nothing to do with closing the achievement gap - issues like gender anatomy and identity, gender roles, homosexuality, witchcraft, the alleged racism of the Pilgrims at the first Thanksgiving, etc. We see this as protecting children from the harms of government indoctrination, including in the controversial area of sex education. The governor should be thanked.

http://www.edwatch.org/

Deception: Hann, Stensrud and Loon say Minnesota isn’t competitive with other states. Where are they getting their information, from the MN Chamber of Commerce? Probably, because they recently conducted a survey of MN businesses and in an article in Twin Cities Bizjournal Sept 20th, the Chamber said local businesses lacked optimisim. They are worried about being able to compete because of high Health Care costs and taxes and government policy at the state and federal level.



Minnesota is ranked 8th among 50 states for business competitiveness by CNBC, but yet in a recent article Minnesota businesses profesed a lack of optimism. CNBC recently ranked 50 states for competiveness. Minnesota tied with Utah, 8th overall. Mass ranks 5th overall and their economy is great according to their Governor because of investments in education, health care and transportation. All are linked to business success.

www.bizjournals.com

In February of this year Moody’s lowered its outlook on Minnesota GO debt and credit outlook. As of Feb, Minnesota had a Aa1 rating. According to an article in Politics in Minnesota the problem is due to a “loss of budget reserves and heavy reliance on one-time measures which only solves temporary deficits” which is more a policy and leadership problem.

www.cnbc.com/id/37516043/


Hann, Stenrud and Loon beating the deception drum, making things look worse than they are, misinforming the public.

Erik Paulsen's Attack Ad on Meffert fails fact-check

Paulsen claims Jim supports a government control of health care
WRONG

Government Takeover? Not according to the Health Care Industry

http://www.americanchronicle.com/articles/view/174216

Despite the fact that the federal health insurance plan (a.k.a. the “public option”) is now gone from the bill, Republicans and conservative groups have continued to claim that the bill institutes a system like the one in the United Kingdom, or Canada, or otherwise amounts to a government takeover. It doesn’t. A pure government-run system was never among the leading Democratic proposals, much to the chagrin of single-payer advocates. Instead, the bill builds on our current system of private insurance, and in fact, drums up more business for private companies by mandating that individuals buy coverage and giving many subsidies to do so.


http://www.factcheck.org/2010/03/a-final-weekend-of-whoppers/


Paulsen says Meffert supports cuts to Medicare

WRONG

In reaction to the cost cuts the government is implementing insurers will cut seniors benefits in order not to lose profits.


http://politifact.com/truth-o-meter/article/2010/mar/18/top-10-facts-know-about-health-care-reform/



Paulsen claims Meffert’s agenda kills jobs with taxes
WRONG

Moody's business analysists say the tax hit would not be too high for most small businesses. Even for those making over $250,000 the tax hit would be small

Erik Paulsen voted NO on HR5297 bill to create small business jobs

http://www.govtrack.us/congress/vote.xpd?vote=h2010-375

Paulsen is talking about not extending the tax cuts to the top 2% earners as a job killer.
Economists from Moody’s Analytics, in an analysis of Federal Reserve data going back to 1989, came to this conclusion, in a report released this week, that spending is far more impacted by the business cycle, such as the fluctuation of stock prices, than tax cuts.
Dean Baker of the Center for Economic and Policy Research, estimates that the tax hit would not be too high for most small businesses. For one, the marginal tax increase impacts earnings, not revenue. A business would need to be clearing more than $250,000 a year after salaries and other costs in order to see a tax hit. And then, it would likely be small. “For the $250,000 to $500,000 a year bracket,” Baker notes, “the estimated tax hit is $700. That isn’t enough to hire anyone.”

http://washingtonindependent.com/97315/who-would-the-tax-increases-hurt


Paulsen claims Meffert supports reckless spending

WRONG

Economists say More Bang-for-the-Buck with Spending, because most tax-cuts are saved, not spent.

Spending versus tax cuts, by Paul Krugman: Jeff Frankel says what I wanted to say about what we know so far about the impact of the stimulus:
Martin Feldstein and others predicted that the tax-cut component of the 2009 fiscal stimulus package would have substantially less expansionary bang-for-the-buck than the spending component of the package, because much of the tax cut would be saved, as had been the case with the 2008 tax cut. (“Bang for the buck” in this case could be defined as demand stimulus divided by budget cost.) We knew this from Milton Friedman’s permanent income hypothesis, or even from good old Keynesian multiplier theory.
http://economistsview.typepad.com/economistsview/2009/08/spending-versus-tax-cuts.html

HACKS OF ANY POLITICAL ILK LOSE CREDIBILITY

What do we mean by calling them hacks?

They're simply out to destroy the reputations of any candidate who opposes their candidate by any unethical or dishonest means.

The Braublog Minnpost article URL is below.

We're not even going to mention their names, let's just say their reputations for skirting the line between fact and fiction proceeds them.

To the contrary, the AP piece picked up by MN Progressive, was FACT on.

Though it's not PHL's policy to pick on the children of politicians, of any political persuasion.
Minnpost is right, does any of this have to do with reducing our $6M deficit? No.

And to that fact, Tom Emmer is the last one of the three running to seriously address
the deficit with a budget everyone can examine.

The candidates themselves need to send a clear message to hacks spreading rumors on their behalf. STOP.

Our message to both these political hacks: your credibility is further damaged by passing off sloppy research as fact. One gets the idea that you can't win on policy so you just create scandals where none exist.

By stooping to such tactics, you defeat your own purpose, and actually make your party and your candidate look desperate.

http://www.minnpost.com/braublog/2010/09/02/21119/why_ap_spiked_the_emmer_son_drinking_story_that_city_pages_ran