2013

Minnesota House of Representatives

republican caucus

Efficient, Effective Government Delivers

Republican Budget Turnaround

Looking back now, after two years, we can see that the policies Republicans put in place worked. We allowed Minnesotas economy to grow and create jobs. That $5 billion budget deficit took a dramatic turnaround and grew into a more than $3 billion budget surplus. What was once a 7.5 percent unemployment rate is now 5.3 percent. Just last year, 55,000 new jobs were created and 60,000 Minnesotans took a risk and worked hard to start their own business. And the best news is, Minnesotas economy continues to improve and revenues continue to come in higher than projected. Here are some key developments which show how Minnesota is on its current path to a healthier economy: Revenue Rising: Economic forecasts issued since Republicans put a new budget in place in 2011 have combined to produce nearly $3 billion in more-than-expected revenue. Long-Term Stability: Budget decisions Republicans made in 2011 not only erased a $5 billion shortfall, but paved the way for a surplus projected for 2016-17. Reserves Replenished: Republican surpluses filled the states depleted reserves, cash flow account and repaid $1.8 billion to Minnesota schools.

The Democrats approach...

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Everyone Pays More

The 2013 Tax Bill raises $2.1 billion in new taxes starting this summer. Mom & Pop Shop Tax, New 4th tier tax: $1.12 billion by increasing income tax on top bracket by 25 percent, including small businesses. This makes Minnesotas income tax rate the 2nd-highest in the nation for comparative income. Large Employer Tax: $424 million from a tax increase on large employers resulting in less take-home pay for hardworking employees. Cigarette Tax: $408 million from increase of $1.60/pack (from $1.23 to $2.83). Sales and Gift Tax: $137 million by expanding sales tax to services like warehousing and storage, IT services and telecommunications and gift tax. Everyone pays more for necessities: Groceries like bread and milk due to warehousing tax Medical products due to warehousing tax Gas due to warehousing tax Electric bills due to additional mandates on utility companies Health Insurance due to Democrats Insurance Exchange Drivers licenses, vehicle registration and vehicle title fees Internet purchases due to sales tax Farm equipment repairs due to electronic and commercial repair services sales tax

Wasteful Spending
Rather than creating a more effective government by forcing it to live within its means, legislative Democrats focused on wasteful spending this session. By permanently increasing spending over the next two years by $3 billion, hardworking taxpayers will now lose more of their paychecks in order to fund more inefficient government programs. Democrats Insurance Exchange (HIX): This legislation means higher costs, fewer choices and less privacy for Minnesotans. It does nothing to guarantee better health care, lower insurance premiums, increase coverage or create savings in the health care system. Funding state agencies above requested amounts: In some cases, House and Senate Democrats compromised upward and spent more money on state government programs than either body had originally approved. Minneapolis, St. Paul bailouts: Hardworking taxpayers contributed tens of millions toward eliminating debt on facilities in Minneapolis and St. Paul. Bonding bill: House Republicans defeated Democrats original $800 million bonding bill bloated with wasteful spending items. Republicans helped pass a $176 million bill that focused on flood mitigation, veterans and repairs for the Capitol.

Pick Winners & Losers

Instead of focusing on items that unite us such as crafting a balanced budget and creating jobs legislative Democrats spent most of this session debating divisive social issues or proposals that pick winners and losers. Childcare unionization: All childcare providers should be able to provide quality, affordable services to parents without government interference, yet Democrats approved legislation that forces a unionization vote on childcare providers to benefit their special interests. Eliminating GRAD standards: Democrats got rid of graduation standards instead of giving Minnesota students and our states future workforce the tools they need to meet our high standards. Our high school diploma should be more than a certificate of participation. Cuts to vulnerable Minnesotans: Democrats increased spending in every budget area except for Health & Human Services which received a $50 million cut. Redefinition of marriage: Despite the fact that Minnesotans remains divided on this issue, Democrats prioritized a measure to legalize same-sex marriage in Minnesota. Solar mandate: Democrats approved a new 1.5 percent solar standard, forcing power companies to invest in one of the most expensive and unreliable energy sources, and pass those costs on to the hardworking taxpayers who use electricity. 2nd Amendment restrictions (failed): Democrats tried repeatedly to pass legislation that would limit the 2nd amendment rights of law-abiding gun owners in Minnesota. Eventually, they determined their proposals did not have the needed support to pass on the House floor, and they abandoned their effort.

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