House Tax Bill Blasts Homeowners Narrowly Passes
How Did Your Representative Vote?
(April 25, 2009) St. Paul--One day after the Minnesota Senate voted to raise income taxes on all Minnesotan’s, the Minnesota House Tax bill that increases income tax on top income earners to 9 percent, eliminates the mortgage interest deduction (replacing with a credit worth half as much), removes the deductibility of property taxes, eliminates the relative homestead market value credit (MVC), increases cigarette taxes by 54 cents, increases drink taxes by 3 to 5 cents, and caps the child care tax credit at $200, narrowly passed the House Floor.
Again, Democrat Farmer Labor caucus leaders allowed (18) suburban, vulnerable, or swing district legislators to vote against the tax increases but insured they had just enough votes to pass the bill. Headed to conference committee REALTORS® and the general public are urged to pay extra special attention to the process, negotiations, and resulting language changes from here on out. Of course, whatever comes out of conference committee will likely still have a number of provisions the Governor still finds unreasonable. Suffice to say legislators and the Governor still have their work cut out for them. While one can only speculate as to the intricacies of the final package, glimpses at what is to come for the end game have certainly started to emerge.
Note: Bold below are ‘crossover DFLers’ (DFLers who voted no).
Who Represents You?
How Did Your Representative Vote?
Those who voted in the affirmative were:
Anzelc
Atkins
Bigham
Bly
Brown
Brynaert
Carlson
Champion
Clark
Davnie
Dill
Eken
Falk
Faust
Fritz
Greiling
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Johnson
Juhnke
Kahn
Kalin
Kelliher
Knuth
Koenen
Laine
Lenczewski
Liebling
Lieder
Lillie
Loeffler
Mahoney
Mariani
Marquart
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Olin
Paymar
Persell
Peterson
Reinert
Rukavina
Sailer
Sertich
Simon
Slawik
Slocum
Solberg
Thao
Thissen
Tillberry
Wagenius
Ward
Welti
Winkler
Those who voted in the negative were:
Abeler
Anderson, B.
Anderson, P.
Anderson, S.
Beard
Benson
Brod
Buesgens
Bunn
Cornish
Davids
Dean
Demmer
Dettmer
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Emmer
Gardner
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Holberg
Hoppe
Howes
Jackson
Kath
Kelly
Kiffmeyer
Kohls
Lanning
Loon
Mack
Magnus
Masin
McFarlane
McNamara
Morgan
Murdock
Nornes
Obermueller
Otremba
Pelowski
Peppin
Poppe
Rosenthal
Ruud
Sanders
Scalze
Scott
Seifert
Severson
Shimanski
Smith
Sterner
Swails
Torkelson
Urdahl
Westrom
Zellers

Senate Tax Plan = Tax Everyone!

The Minnesota Senate Tax plan is even worse than one might imagine. It plans to raise $2.2 Billion in taxes. Mostly, by raising income taxes on everyone! That's right...everyone!

Income Current Rate Proposed Rate

0- 31,860 5.35 6.0

31,860 - 126,580 7.05 7.7

126,580 - 250,000 7.85 8.5

Creating a new 4th tier

141,250 Single
212,500 Head of Household
250,000 Jointly

would all pay 9.25% amongst the highest income tax rate in the country! Only California and Rhode Island have higher income taxes on the wealthy. Even if we, for the sake of argument, don't even consider the evils of a proposed tax increase on the wealthy, this plan is extends to every taxpayer! Everyone who pays taxes will pay more. Where does it end?

Now I know there are those out there that are going to make excuses for it and try to explain it away, usually by say "if it means better schools, roads, etc then I am all for it." That's fine to say once. It's just not reality. Reality is that Minnesota's GF sepnding has doubled in the last 10 years from 18 B to 38 B. I don't know business or individual who's budget doubles every ten years. So you say we can't do it with cuts alone and I say 'yes we can!'

MN House Floats Tax Raising Bill

The Minnesota House of Representatives finally revealed their expected prodigal Tax Bill. Having previously set there budget up to include $1.5 Billion in "New Revenues" (a.k.a. new taxes) the House Tax Chair is taking the opening shot at what will prove to be a very difficult legislative end game. Less than one month to go, the House plans to balance the state budget by creating a new 4th Tier Income Tax rate at 9% (read = class warfare), increasing the cigarette tax by 54 cents (admittedly the most regressive tax), increasing liquor tax by 5 cents per drink (read = weak), and last but certainly not least by eliminating the State Mortgage Interest Deduction and creating a credit instead. The Mortgage Interest Deduction is aggregious because it would disportionately fall on the newest buyers first and apply to their taxes for a period of approximately 10-15 years based on most mortgages being front end loaded.

Really House DFL? This is the plan we have been waiting for 4 months? Don't strain yourself. Don't put something into your strategy. Just serve up exactly the worst piece of garbage you can come up with and wait for the veto!

Six Step's to Handling Madoff's Assets?

Bernard Madoff's assets:

$7 million Manhattan Penthouse
$1 million Home in Cap d' Antibes, France
$3 million Luxury Home in Long Island
$10 million Furnishings
$62 million Securities
$2.4 million 55' Yacht & 24ft boat

How to handle his assets:

1) Step one certify everyone who has a legitimate claim.

2) Sell all REAL Estate at High End Auction, make sure to pay a REALTORS(R) commission

3) Sell all remaining securities

4) EBAY every piece of personal property

5) Create a trust to pay ALL claims

6) Deposit any proceeds into U.S. Treasury

U.S. Gov't to Guarantee your new car warranty??

Okay, now this is just the most 'whacked out' plan ever. The U.S. Government, the same entity that brought you: Auto Bailouts, Bank Bailouts, Stimulus, zero percent fed funds rate, rising unemployment, and a penchant for printing money faster than a nuclear particle accelerator. Now came up with the brillant idea of gauranteeing your new car warranty, if the auto industry goes out of business.

Yeah right, like anyone is buying a new car. I was at the dealer today and it was a fricking ghost town!

What does a gaurantee mean when the dollar falls below the peso?

Minnesota's February Forecast Released

If the last election has you more interested in politics than ever before.
If you read the newspaper and think, there has to be more information.
If you are concerned about Minnesota's economic future.

Than you really owe it to yourself to read or at least skim the Minnesota Management and Budget Office's February Forecast. It is a complete economic picture of Minnesota right now and a short prospectus for future quarters of economic activity.

Give it a look see!


http://www.mmb.state.mn.us/doc/fu/09/complete-feb09.pdf

AIG gets 4th Billion Dollar Government Handout!!

Well the U.S. Government must be reading "The Little Engine that Could" because it sure doesn't know when to give up.

The New York Times is reporting the U.S. Government is about to bailout AIG for the fourth, count them, one, two, three, four, fourth time.

Apparently, all the help offered thus far has not been nearly quite enough. Let's briefly review.

First time around, the U.S. Government gave AIG a $60 billion loan. That should do it right? I mean $60,000,000,000 'it ain't peanuts' am I right? Well no, not quite.

Second time around, the U.S. Government purchased $40 billion worth of preferred stock. Making the Government one of the largest share holders. Now that outta do it right? I mean $100 billion total, now we are talking real money. Nope not going to happen.

Third time around, the U.S. Government spends $50 billion to clean up AIG's so called Toxic Assets. BTW, Toxic Assets to you and me are called 'poor investment choices' or huge credit bills at high interest rates with no way to pay. The government as it's role of 'lender of last resort' is diehard against letting AIG fail. It would rather keep it on the Government roll.

Ok that's it I've fricken had it. We've given you $150 billion and you still can't make it? Does AIG strike anyone else like that gambling addicted uncle you remember from your childhood? You know who I am talking about. The one who when he showed up you hid your piggy bank to make sure you didn't lose your allowance to gambling addicted alcholic bum. Remember when he showed up to your birthday party and your gift was pre-played pull tabs and a pine tree air freshner? Remember asking yourself why your mother kept handing him money and making him dinner without so much as a thank you. All you kept thinking to yourself was how all you got was a mere $2.50 a week and had to do all your chores meanwhile your uncle could show up unannouced wreaking of booze, fresh off that gambling loss without a cent to his name and he would still manage to get $100-$200 out of your parents. But oh yeah, that's right 'it's a disease,' yeah sure. You sick alright. Sick of working for a living and following the rules like the rest of us smucks! Seriously, does AIG remind anyone else of their deadbeat uncle or is it just me?

Wait what's that? You need $30 billion more? "No problem, step right into my office Mr. AIG? We have that $30 billion right over hear. What worried about paying back the $150 billion you already own us, nonsense. What will the American people think? I wouldn't worry your pretty little head about those things. We'll just slip it into the business section of the NY Times on a Saturday after people have completely given up reading the paper and watching the news.

What does the U.S. Government say to defend it's position? "AIG is intricately woven through the words banking system." Therefore we must give them billions and take massive stakes in the company. News flash! If you would have let them fail to begin with then they wouldn't have been so "woven" would they?

After this transaction the U.S. Government will own 80% of AIG's holding company. That's right 80%!

In fact, if the Government would own any more of AIG, greater than 80%, than the U.S. Government would have to consolidate AIG's and US finances onto one balance sheet leaving the U.S. Government responsible to nearly 76 million insurance policy holders from around the world!

Soon enough AIG and USA will be synonymous and interchangeable.

I think AIG stands for 'Already in Government's pocket' and USA stands for "U Screwed us All!"