"When he took office in January of 2011, Minnesota governor Mark Dayton inherited a
$6.2 billion budget deficit and a
7 percent unemployment rate
from his predecessor, Tim Pawlenty, the soon-forgotten Republican
candidate for the presidency who called himself Minnesota's first true
fiscally-conservative governor in modern history. Pawlenty prided
himself on never raising state taxes -- the most he ever did to generate
new revenue was increase the tax on cigarettes by 75 cents a pack.
Between 2003 and late 2010, when Pawlenty was at the head of Minnesota's
state government,
he managed to add only 6,200 more jobs.
During his first four years in office, Gov. Dayton
raised the state income tax
from 7.85 to 9.85 percent on individuals earning over $150,000, and on
couples earning over $250,000 when filing jointly -- a tax increase of
$2.1 billion. He's also agreed to raise Minnesota's minimum wage to
$9.50 an hour by 2018, and passed a state law
guaranteeing equal pay for women. Republicans like state representative Mark Uglem
warned against Gov. Dayton's tax increases,
saying, "The job creators, the big corporations, the small
corporations, they will leave. It's all dollars and sense to them." The
conservative friend or family member you shared this article with would
probably say the same if their governor tried something like this. But
like Uglem, they would be proven wrong.
Between 2011 and 2015, Gov. Dayton added
172,000 new jobs
to Minnesota's economy -- that's 165,800 more jobs in Dayton's first
term than Pawlenty added in both of his terms combined. Even though
Minnesota's top income tax rate is the
4th-highest in the country, it has the
5th-lowest unemployment rate in the country at 3.6 percent. According to 2012-2013 U.S. census figures, Minnesotans had a median income that was
$10,000 larger than the U.S. average, and their median income is still
$8,000 more than the U.S. average today.
By late 2013, Minnesota's private sector job growth
exceeded pre-recession levels, and the state's economy was the
5th fastest-growing in the United States. Forbes even ranked Minnesota the
9th-best state for business (Scott Walker's "Open For Business" Wisconsin came in at a
distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton's tax cuts,
6,230 more Minnesotans
filed in the top income tax bracket in 2013, just one year after
Dayton's tax increases went through. As of January 2015, Minnesota has a
$1 billion budget surplus,
and Gov. Dayton has pledged to reinvest more than one third of that
money into public schools. And according to Gallup, Minnesota's economic
confidence is
higher than any other state
Gov. Dayton didn't accomplish all of these reforms by shrewdly manipulating people --
this article
describes Dayton's astonishing lack of charisma and articulateness. He
isn't a class warrior driven by a desire to get back at the 1 percent --
Dayton is a billionaire
heir to the Target fortune. It wasn't just a majority in the legislature that forced him to do it -- Dayton
had to work with a Republican-controlled legislature for his first two years in office. And unlike
his Republican neighbor to the east,
Gov. Dayton didn't assert his will over an unwilling populace by
creating obstacles between the people and the vote -- Dayton actually
created an
online voter registration system, making it easier than ever for people to register to vote.
The
reason Gov. Dayton was able to radically transform Minnesota's economy
into one of the best in the nation is simple arithmetic. Raising taxes
on those who can afford to pay more will turn a deficit into a surplus.
Raising the minimum wage will increase the median income. And in a state
where education is a budget priority and economic growth is one of the
highest in the nation, it only makes sense that more businesses would
stay.
It's official -- trickle-down economics is bunk. Minnesota
has proven it once and for all. If you believe otherwise, you are wrong.
"