ISSUES
JOBS & THE ECONOMY
Job growth in Minnesota has been flat-lined for a decade, a sharp reversal from the 500,000 jobs created from 1990-2000.
As a small business owner, Linda understands the importance of a robust state economy. Minnesota ranks among the 10 worst states for its business tax climate, according to the Tax Foundation's 2010 State Business Tax Climate Index*. Regulatory burdens also impede job creation, especially in our manufacturing, agri-business, and mining industries. Excessive regulations and bureaucratic inertia affect Minnesota's economic competitiveness. Minnesota earns a low economic competitiveness ranking (a composite of 37th) in studies by Cato Institute, Pacific Research Institute, George Mason University, and others.
The state's responsibility for job creation is providing the necessary infrastructure. In addition, the legislature must refrain from interfering with the natural discipline of markets. Short term, the legislature should enact incentives for immediate hiring and purchase of capital equipment; redeploy training dollars to companies and individuals ready to hire/be hired.
*http://www.taxfoundation.org/research/show/26057.html
SPENDING REFORM
We can't spend our way to prosperity. This maxim is as appropriate for government budgets as it is for family budgets.
State finances will be constrained for years due to the recession, according to state economist, Tom Stinson, as a result of fewer jobs, less consumer spending and fewer taxes paid. Linda believes government spending must adjust downward and be redirected to higher value programs. Examples of this would be to eliminate special corporate welfare programs such as JOBZ in order to reduce business taxes across-the-board; redirect state job training dollars to businesses with jobs ready to fill; shift education categorical aid to impact all students; direct LGA (Local Government Aid) to high priority asset preservation and infrastructure improvements.
TAXES
Linda is working to make Minnesota's tax code more economically competitive. She says Governor Dayton’s tax the rich proposal is not good for Minnesota. Minnesota's tax rates are already higher on those with high incomes. Combined with the progressive federal income tax, individuals in the upper brackets pay nearly 50% of their income in taxes.
Taxing the rich is not sound tax policy and has been losing popularity among governors around the country. Higher taxes on the top tier have been rejected in most states, even in New York, where Democratic Gov. Cuomo called it the ‘old way’.
Tax policy experts warn against overreliance on the income tax, the most volatile of all taxes. Minnesota’s revenue base is already over-reliant on a progressive income tax code which affects capital gains as well as ordinary income. Roller-coaster revenues result. Witness the 15% surpluses in the boom years of 1997-2000 and the deficits in the recession years of 2002-03 and 2008-09. California’s high tech bubble generated vast personal fortunes and state tax revenues, but when the bubble burst, the state was left with large deficits.
Under the Dayton tax plan, the super-rich still would not necessarily pay more in taxes. that's because they can invest their passive wealth in tax-free municipal bonds (which build public infrastructure like school buildings) or other legitimate tax shelters. Higher income taxes would likely find more funds invested in tax-free investments rather than more risky private sector ventures.
The Dayton tax is really a tax on capital and on entrepreneurs putting their money at risk to create jobs and wealth through successful business ventures. If the owner of Digi-Key, for example, once a small start-up that now employs several thousand in Thief River Falls, would decide to pull his company out of Minnesota because of bad tax policies, a town of 8,000 will be in peril. More businesses could follow. When government sucks up more and more capital, it means fewer new jobs, fewer technology improvements, and smaller increases in wages and benefits for employees.
Minnesota should adopt tax policies that keep and attract wealth creators, not encourage their departure from our state. Giving Minnesota the 2nd highest tax rate in the country would hurt every Minnesotan if the state’s high earners pick up stakes and go elsewhere.
K-12 EDUCATION
Kids come first!
Education is the largest line item in the State of Minnesota budget at $7 billion per year or $15 billion per biennium. Additionally, taxpayers pay billions more in local taxes for education.
Education funding per pupil across the state is not equal. For example, students in Minneapolis schools are funded at $14,404 for the 2010-2011 school year. Students at Centennial are funded at $9,095; White Bear at $9,708 and Mounds View at $11,042. Addressing inner city poverty is necessary, but there must be accountability for the dollars.
As a state representative in the 90's, Linda was involved in a legislators for equity coalition. Linda supported this legislation for referendum equalization aid and debt service equalization aid which was signed by Gov. Carlson.
Linda will work to:
. Reallocate education funds to increase the per pupil funding.
. Fund programs to achieve reading proficiency by 3rd grade.
. Maintain citizens' right to vote on school levies.
. Encourage stronger partnerships between parents, schools and community.
. Give more authority to school boards to manage costs.
HEALTH CARE
Public sector spending on health care is rising at twice the rate of private sector spending. The reason: people spend money more readily when it's not their own.
Linda believes government is ineffective at controlling health care costs. A good example of this is the 21 new taxes and 155 new agencies established under the new federal health care law (ObamaCare).
Private health plans have more incentive to watch costs than government. A recent study of Medicare fraud reveals that government uses the "pay and chase" method. It pays the bill and investigate after, resulting in an estimated $70 billion (10%) in fraud annually. In the private health insurance market, the claim is investigated before it is paid and fraud amounts to 1.5% annually. http://online.wsj.com/article/SB10001424052702304760604576428300875828790.html
Linda supports market-based health care solutions as the most effective way to stem the rising costs of health care.
OTHER ISSUES
Linda supports:
- Photo I.D. for voting legislation
- Repeal of the ban on nuclear energy
- Bipartisan redistricting commission (impartial process)
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