Dayton’s special session ultimatum

Last night while attending a BPOU fundraiser, we got news that Gov. Dayton won’t call a special session if Republicans insist that the the warehouse sales tax be repealed. Gov. Dayton’s insistence that Republicans not attempt to repeal the warehouse sales tax is puzzling. Gov. Dayton knows it’s hurting Minnesota’s economy. Gov. Dayton knows Red Wing Shoes is holding off on a $20,000,000 warehouse project until they know that tax is repealed.

There’s nothing positive gained by keeping the Democrats’ mistake tax on the books. There’s plenty of economic bad news that likely will happen if it isn’t repealed.

 

Several of the legislators I spoke with noted with sadness that the tax revenue for July fell short of expectations:

In all, Minnesota took in just shy of $936 million in taxes, about 2.2 percent less than anticipated.

If that trend continues, which we can’t predict at this time, that would mean the deficit from the first year of the all-DFL budget would be almost $850,000,000. Despite that bad news, Gov. Dayton issued an ultimatum that he wouldn’t call a special session if the GOP wanted to repeal a tax that’s harming Minnesota economy.

There’s no disputing the fact that the warehousing tax won’t go into effect until April, 2014. Similarly, there’s no disputing the fact that Red Wing Shoes have put off a major warehouse project until that tax is repealed. That’s at minimum. If that tax isn’t repealed, Red Wing Shoes will build their warehouse in neighboring Wisconsin.

What’s the logic behind Gov. Dayton’s ultimatum? Does he really want to hurt Minnesota’s economy that much? Is it that he doesn’t understand what makes the economy tick? Whatever the reason, it’s apparent that Minnesota can’t afford another 4 years of liberal stupidity in the Governor’s Mansion.

Comments welcome at Let Freedom Ring.