Capitol View: September 18, 2008 Archive

Chamber opposes sales tax increase for arts and outdoors

Posted at 7:51 AM on September 18, 2008 by Tom Scheck (2 Comments)

The Minnesota Chamber of Commerce has decided to oppose the proposed sales tax increase that would dedicate funding for the arts and the outdoors. The Chamber and its lobbying heft could play a critical role in defeating the proposal which is on the November ballot. Here's the release:

ST. PAUL - The Minnesota Chamber of Commerce is formally opposed to the proposed constitutional amendment to supplement funding for the state's natural and cultural resources, according to a resolution by its Board of Directors.

Voters will be asked Nov. 4 whether the state's sales tax rate should be increased by three-eighths cent to increase state funding for these programs. Among the beneficiaries would be the Clean Water Legacy Act, a program supported by the statewide business community.

"The amendment is not needed to adequately fund the Clean Water Legacy Act," Chamber President David Olson said. "In addition, the proposal is poor budget policy and a significant business tax increase."

In 2004, the business community and 15 other stakeholders supported a water fee to finance the cleanup of the state's impaired waters, Olson said, but the proposal was rejected by the Legislature. The Chamber also has suggested that all or part of the cleanup could be financed by reallocating existing environmental protection resources. The Minnesota Chamber maintains that these avenues are viable alternatives to the proposed amendment.

Olson also noted that the dedicated money must be in addition to - and not in place of - traditional funding for natural and cultural resources. "The amendment may actually limit the ability of the governor and Legislature to address future budget deficits and other priorities. That's especially important as the state general fund faces a shortfall of between $1 billion and $2 billion for 2010-2011."

Minnesota businesses already face high taxes, Olson said. This measure would only worsen that burden as Minnesota Department of Revenue figures show that businesses pay approximately 45 percent of the state's sales tax. If passed, the amendment would raise business taxes by about $110 million in 2010.

The Minnesota Chamber of Commerce is the state's largest business advocacy organization, representing more than 2,400 businesses of all types and sizes on state public policy and regulatory issues.

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Minnesota loses more jobs

Posted at 11:19 AM on September 18, 2008 by Tom Scheck (1 Comments)

The Department of Employment and Economic Development reports that Minnesota lost 3100 jobs in August.

Question of the Day: Does this have a greater impact on the presidential race in Minnesota?

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Pawlenty will miss McCain/Palin campaign event

Posted at 4:32 PM on September 18, 2008 by Tim Pugmire

When Republican presidential candidate John McCain returns to Minnesota Friday for a campaign event in Blaine, Minnesota Gov. Tim Pawlenty won't even be in the same area code.

Pawlenty's public events schedule for Sept. 19 includes a 12:00 p.m. groundbreaking ceremony for the Minnesota Steel plant in Nashwauk. That's the same time McCain and his running mate, Alaska Gov. Sarah Palin, are scheduled to appear at the Anoka County Airport.

Pawlenty was reportedly a finalist in the GOP veepstakes, but McCain went with Palin instead. During the Republican National Convention in St. Paul, Pawlenty delivered one of several introductions to McCain's acceptance speech.

A spokesman for Pawlenty called to say First Lady Mary Pawlenty will serve as m.c. at the Blaine event. He added that the governor continues to be supportive of McCain.

Gore and MoveOn work to elect Franken

Posted at 5:38 PM on September 18, 2008 by Tom Scheck (2 Comments)

We reported yesterday that former VP Al Gore will campaign with Democratic U.S. Senate candidate Al Franken next month. Today, Gore urged MoveOn.org readers to give money to Franken's campaign.

The Hotline has the story.

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