Statement on DFL budget balancing bill

King Banaian, endorsed candidate for Minnesota House District 15B, issued this statement the day after the Minnesota Legislature passed H.F. 2037, a bill that includes tax increases to balance the 2010.

"Last night my opponent voted to increase taxes on small businesses and what he considers wealthy Minnesotans," Banaian said.  "The last Economic Update from the Finance Department cited consumer confidence and sentiment being 'mired' at low levels and 'lingering employment concerns, slow wage growth, and tight credit are likely to inhibit household spending until 2011.'  Even if you believe Minnesotans don't pay enough, this is a terrible time to raise taxes."

"But we do pay enough.  The DFL bill that Rep. Haws voted for would give Minnesota the 4th highest marginal tax rate in the country on incomes of $200,000.  Higher rates in California have done nothing to cure their budget problems.  Why does Larry Haws think this is a good example to emulate?"

"The answer to every DFL problem is to look at small businesses as an ATM from which they can cover their need for more money.  They have enough; the real need in Minnesota is to reduce spending, not raise taxes.  Rep. Haws had the opportunity to balance the budget by ratifying Governor Pawlenty's spending reductions but voted against that.  When I get to St. Paul, we will set priorities that do not ask already-generous Minnesotans for more," Banaian concluded.

King Banaian is an economist who is running to represent north and east St. Cloud and Haven Township in the Minnesota House of Representatives