(Washington, D.C.) – On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), and more particularly its more than 22,000 members and supports from Minnesota, CCAGW President Tom Schatz yesterday urged Gov. Tim Pawlenty to oppose any tax increases in the Minnesota budget and veto any budget that includes tax increases. 

Below is an excerpt from Schatz’s letter to Gov. Pawlenty:

            I understand that in an effort to reconcile more than $1 billion in spending differences between the House   and Senate budgets, a number of tax increases are being considered.  The Senate finances its higher   spending through a $1.3 billion tax increase, mostly through higher income taxes on the wealthiest 3   percent of the state’s filers.  The House bill expands the sales tax to include most medical equipment used  anywhere but the home.  Both the Senate and House impose higher taxes on rental cars and increase excise    taxes on sales of items such as liquor and cigarettes.  In short, instead of eliminating numerous inefficient    and low-priority programs that are wasting Minnesotans’ precious tax dollars, the legislature is relying on  higher taxes to fund its runaway spending.

            Raising excise taxes on consumer goods is regressive, disproportionately impacting the poor and those    living on fixed incomes.  It will also encourage more people to purchase these products in neighboring  states or on the Internet, hurting Minnesota retail outlets.  In fact, in state after state, so-called “sin” taxes   on products like tobacco have resulted in increased cross-border and Internet sales, in addition to illegal smuggling, which has even funded terrorist groups like al Qaeda and Hezbollah.

            Governor, in the last two and one-half years, you have developed a national reputation as a leader that is  not afraid to stand squarely in opposition to tax increases.  I urge you to maintain those principles by  opposing any tax increases and vetoing any budget that increases taxes.  The real solution to Minnesota’s budget situation is clear:  Reduce wasteful spending; do not raise taxes. 

Citizens Against Government Waste is the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.