The euphoria in participating in a historic vote didn’t last long for DFL legislators.
Less than an hour after passing the law that legalizes same-sex marriage in Minnesota, DFL senators were in meetings, sweating over the unglamorous work of piecing together final budget and tax deals. House DFLers had gone through the same reality-check a few days earlier.
Meantime, Republicans seemed relieved that the same-sex marriage issue was behind them. Until the next election, they can tee off on their favorite subject, DFLers’ proclivity to raise taxes.
“It’s unbelievable,” Rep. Greg Davids, R-Preston, was saying Monday morning. “Tax gas. Tax alcohol. Fourth- and fifth-tier income taxes. I’m concerned that we’re going to end up with a funeral tax that hits people one more time when they’re leaving. In Minnesota, you can keep paying taxes when you’re dead.”
Davids, as he is wont to do, predicted that by the time DFLers are done with this session, businesses will be fleeing for South Dakota and Wisconsin.
Republicans have been predicting dire things for years. But this time around, they have picked up some interesting allies.
Uneasy suburban DFLers
Remember the new breed of legislators — moderate, pro-business suburbanites — that did so much to put the DFL back in the majority in November? They’re not exactly thrilled with the menu of taxes that are grinding through the process this session, either.
Two DFL legislative rookies, Rep. Laurie Halverson of Eagan and Sen. Melisa Franzen of Edina, both are gulping at the tax proposals that appear headed for passage.
Halverson is more direct than Franzen.
“I’m not happy about the taxes,” she said. She said her big concern is that the DFL is racing ahead of “public trust” as it tries to make up for “10 years of devastating cuts.” It is her belief that the DFL should be more patient in its goals.
“I don’t think the public, at least in my district, is ready to trust us with money coming in one lump,” she continued.
Halverson, Franzen — and Sen. Terri Bonoff, who has been carrying the moderate suburban DFL flag since 2005 — are among the DFLers who oppose the fourth-tier income tax on Minnesota’s wealthiest, and they certainly oppose a surcharge above and beyond the fourth tier.
The fourth tier and surcharge are part of the vague final deal that Gov. Mark Dayton, House Speaker Paul Thissen and Senate Majority Leader Tom Bakk unveiled Sunday.
'Success taxes'?
Republicans have taken to calling those taxes “success taxes,” and Halverson, Franzen and Bonoff don’t disagree with that assessment.
Both Halverson and Bonoff have made it clear they can’t get on board the DFL’s “tax the rich” bandwagon.
“I’ve been for tax reform,” said Bonoff, who would support expanding the sales tax to clothing and some consumer services. “I don’t support the fourth tier.”
Franzen is a little more circumspect as to what she might support as the session moves quickly toward conclusion.
She doesn’t like the fourth tier, but if there’s a final tax and budget plan that gives her most of what she needs, and only some of what she opposes, she’s not point-blank saying she’ll oppose a fourth tier.
Franzen obviously was moved by an appearance late last week at the DFL Senate caucus from former Vice President Walter Mondale. He apparently talked of the importance of taking “courageous” votes, even if it might be easier to delay such votes.
“I recognize we have the window of opportunity,” said Franzen, referring to the fact that for the first time in more than two decades there is a DFL governor and DFL legislative majorities. “I understand the idea of ‘If not now, when?’ ”
But Franzen did not win election by promising to raise a smorgasbord of taxes.
“We can’t solve all the problems,” she said. “We can’t be raising every tax known to man.”
Support for some tax increases
There are taxes the three suburban DFLers support.
Gasoline taxes, for example, are popular with most businesses in their districts. Even the trucking business, big in Eagan, took a lead in supporting the gasoline tax to rebuild roads and bridges.
The additional quarter-cent sales tax in the metro area for investing in transit projects also seems to get a thumbs-up.
And there’s no problem with raising the tax on cigarettes, which is seen as a win-win deal. The tax increase would increase revenue in the short term but, many believe, discourage smoking in the future.
“The thing we need to try to make people understand,” said Halverson, “is that we are not increasing spending. We’re restoring years of horrible cuts. People need to see smaller classrooms, they need to see student improvement, nursing homes getting support. But to get there, we have to build trust.”
Halverson repeated her concern that DFLers are too far ahead of public trust.
“I’ll do the things I can,” she said, “but I am here to represent my district.”
The same-sex marriage vote was thrilling and historic and safe for metro-area DFLers. The votes that lie ahead are simply hard.