Posted: 7/28/06
Sen. Lourey presents state government fiscal framework as part of her campaign for governor
by T.W. Budig
ECM capitol reporter
Sen. Becky Lourey presented her state government fiscal framework on Wednesday (July 26), saying the other gubernatorial candidates also need to show how theyíll pay for things.
Lourey is challenging endorsed DFL candidate Attorney General Mike Hatch in the Sept. 12 gubernatorial primary.
Arguing that her seven fiscal policy goals work together, Lourey said the plan is good for business, public safety, families.
Included in the plan is a tax increase on those in the highest income bracket.
Lourey, who offered no specific numbers, explained the current 7.85 tax rate would likely remain below 10 percent.
Lourey argues the rich ó those making more than $411,000 a year ó pay a 26 percent lower effective tax rate than middle class taxpayers.
ìOverall families will be better off financially,î said Lourey.
She argues the tax increase would restore a progressive tax system.
In the area of transportation, Lourey, besides proposing a staged gas tax increase, is also proposing a carbon tax or a tax based on a vehicleís per gallon mileage rate as a means of raising money for alternative transportation.
The size of the carbon tax will be influence by whether the proposed constitutional amendment dedicating all the motor vehicle sales tax to transportation is passed by voters in he fall, explained Lourey.
Itís ìunconscionableî the state bond for highway improvements because roadwork has a short term value.
Itís not like bonding to build a building, Lourey explained.
Other elements of Loureyís fiscal program includes an education stability levy expected to even out school funding between rich and poor school districts, going after tax evaders and accountability measures.
As for the other gubernatorial candidates spelling out how theyíd pay for initiatives, Gov. Tim Pawlenty said he has been all along.
Likewise, Hatch, too, said he has been detailing how he would pay for things.
He pointed to his proposal for tightening law on companies with foreign assets as funding his proposal to lower college tutitions.
He is not proposing tax increases, he said.
Capitol Roundup
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