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May 26, 2005
Tax versus feeI got a call the other day from a listener who asked me why we weren't calling Gov. Pawlenty's cigarette "fee" a "tax." Actually, this sharp-eared listener had heard a newscast that referred to a "75 cent charge" on a pack of cigarettes. I had to confess he was right. A "charge" certainly didn't make any sense. Most of the people who work on tax policy at the Capitol say the governor's proposal is a tax, even though Pawlenty insists it's a fee. So we've made a decision at MPR that we will generally refer to it as a tax and do our best to put it in context. Now that we have that out of the way, the debate has begun at the Capitol about what should be done with a higher cigarette tax. MPR's Tom Scheck has the story: Gov. Pawlenty's office hasn't released a specific bill yet on the proposed tax, but he says he would dedicate the entire $380 million to treat smoking-related diseases. What troubles health care advocates is that Pawlenty also wants to shift $280 million from his original health care budget proposal and dedicate that money to public education. Minnesota Human Services Commissioner Kevin Goodno says the proposal should satisfy Senate DFLers who want increases for schools and health care. "The net effect is it helps provide revenues and helps us move toward the position as an administration move closer to the Senate's position on education and the Senate's position on health and human services," said Goodno. And there may be some progress in negotiations on health care. Teeny, tiny progress, yes, but progress. The Star Tribune reports on an idea proposed by Sen. Linda Berglin, DFL-Minneapolis: Specifically, the Senate plan would cut state spending on the General Assistance Medical Care (GAMC) program -- now funded by the state general fund -- by moving most of its enrollees onto MinnesotaCare. MinnesotaCare is funded by a separate fee paid by health care providers. On the political front, MPR's Laura McCallum has news of Attorney General Mike Hatch raising more money to run against Pawlenty: Hatch says he won't make a final decision on the race until this summer, but he clearly relishes the chance to challenge Pawlenty. McCallum says another DFLer, Bud Philbrook is also actively campaigning. And more confirmation that Minnesotans like to vote. The Pioneer Press has the numbers to prove it: It's official: Minnesota had the highest voter turnout — 79 percent — of any state in the nation in the 2004 general election, the U.S. Census Bureau reports today. You know what they say: if you don't vote, you can't complain. So 79 percent of you, gripe away. The rest of you 21 percent, pipe down! Posted by Mike Mulcahy at 6:45 AM |