My Point of View by Shannon Savick

I want to thank Peggy Bennett for the opportunity to respond to a commentary about our state budget where she didn’t tell you the whole story.

My opponent claims that “everyone is paying” higher taxes as a result of the budget we passed. That’s not the whole story, and in fact, it is false. The reality is most Minnesotans are actually paying less in taxes.

We did raise some taxes — but the vast majority of those tax increases (85 percent of them) will come from a tax increase on the top 2 percent of income earners ($1.2 billion), closing corporate tax loopholes ($250 million) and an increase in the tax on tobacco ($400 million).

What my opponent didn’t tell you is that we also reduced taxes for more than 2 million middle-class Minnesotans. After a decade of steep property tax increases, we invested more than $177 million in direct property tax relief through larger refunds to homeowners, seniors and renters.

Just in Faribault and Freeborn counties, 5,210 homeowners and renters will receive a larger property tax refund. Only 168 people in Faribault and Freeborn counties will pay higher income taxes due to the increase on the top 2 percent. We also passed something called “federal tax conformity” which will allow nearly 1 million Minnesotans to take advantage of federal tax cuts that they otherwise wouldn’t have been able to receive.

Our emphasis on the middle class, instead of the wealthiest 2 percent of Minnesotans and corporations, is the reason that an independent fact-checker (Minnesota Public Radio’s “PoliGraph”) concluded more Minnesotans will actually pay less in taxes than pay higher taxes.

My opponent also listed several new “tax increases” that she claimed we were all paying for. Again, she isn’t telling the whole story.

For example, the Legislature did not pass any tax increases on carpets, batteries or water, as she claims. The tax on telecommunications equipment was repealed during the 2014 session. And the “new tax on health insurance premiums” she mentions is actually a fee charged to health insurance companies to pay for the operation of the state’s health insurance exchange.

The last thing that my opponent didn’t tell you is how we spent the new revenue that was raised — again, the vast majority which on the top 2 percent of earners, corporate loopholes and cigarettes.

When I was sworn in our state was facing a $627 million budget deficit and still owed schools about $1 billion. The tax increases we passed helped:

• Close our deficit.

• Invest $700 million in education — including all-day kindergarten and a college tuition freeze.

• Increase funding to nursing homes and caregivers.

• Expand our “rainy day fund” by $150 million to prevent future deficits.

• And as mentioned above, provide tax cuts to more than 2 million middle-class Minnesotans.

The facts show our approach is working well. Minnesota regained all the jobs lost during the Great Recession, businesses are expanding and our unemployment rate is at its lowest level in more than seven years.

As your state representative, I will continue to represent all children, families, and seniors in District 27A — not just the wealthy few or special interests. That’s because a fairer tax system and strong middle class is exactly what Albert Lea and Minnesota needs to succeed.

 

State Rep. Shannon Savick, DFL-Wells, is the incumbent in the race for the House District 27A seat.