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eridani

(51,907 posts)
Sun Jun 7, 2015, 08:11 PM Jun 2015

What happens when you tax the rich and raise the minimum wage? Meet one of USA's best economies

https://www.dailykos.com/story/2015/02/25/1366806/-What-happens-when-you-tax-the-rich-and-raise-the-minimum-wage-Meet-one-of-USA-s-best-economies

When Minnesota Governor Mark Dayton took office in 2011, Minnesota had more than a $6 billion dollar deficit and an unemployment rate of 7%. Today, Minnesota's unemployment rate is now below 4% and they have a budget surplus of over $1.2 billion dollars. How did Mark Dayton do this? Did he heed his Republican opponent Tom Emmer's advice?

Make no mistake, government cannot create the jobs we need to turn our economy around, but private business people can. State government can either help improve the necessary business climate – as I will do if elected governor – or it can hurt job development, as my opponents’ proposals to maintain the status quo would do.


No. No, he didn't.

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.

We all know that equal pay for women is a slippery slope that leads to voting rights and the loss of corsets and hoop skirts. Mark Dayton's approach of making people who can afford to pay, pay, helped eliminate the deficit. Raising the minimum wage gave more people money to spend. Businesses like money and they like people who have money to spend.
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What happens when you tax the rich and raise the minimum wage? Meet one of USA's best economies (Original Post) eridani Jun 2015 OP
Raising taxes has been proven to work time and again. Exilednight Jun 2015 #1
That's MY governor. hifiguy Jun 2015 #2
I was so happy to be able to vote for him. Kalidurga Jun 2015 #5
We have a lot of people to be proud of. hifiguy Jun 2015 #6
Yep Kalidurga Jun 2015 #7
I've long believed that the "Time" article about the good life in Minnesota was one of the worse dflprincess Jun 2015 #9
Dat dere is no walleye, hey. Jackpine Radical Jun 2015 #27
Yup,lookin likea hammer handle to me. Wellstone ruled Jun 2015 #29
Ya godda fillet dem different onna counta da Y-bones. Jackpine Radical Jun 2015 #31
Obviously I do not fish hifiguy Jun 2015 #30
I caught that, too. louis-t Jun 2015 #34
Yah I cawt lotsa dem. Jackpine Radical Jun 2015 #35
We had gar pike where I grew up. louis-t Jun 2015 #36
And what's the matter with elleng Jun 2015 #3
How about Wisonsin, Minnesota's neighbor? Not doing so well. SharonAnn Jun 2015 #10
Wisconsin too, of course. elleng Jun 2015 #15
Compare property taxes in MN and WI HelenWheels Jun 2015 #18
K&R..... daleanime Jun 2015 #4
Huge K & R !!! - Thank You !!! WillyT Jun 2015 #8
And the Twins are winning too bluestateguy Jun 2015 #11
We Minnesotans can be very proud. Our state is the example in this country on how to get out of jwirr Jun 2015 #12
If you ask me madokie Jun 2015 #13
K&R a whole bunch! Enthusiast Jun 2015 #14
Dayton is awesome and has done a great job keeping the GOPers in check. The Velveteen Ocelot Jun 2015 #16
I love Governor Dayton! kenfrequed Jun 2015 #25
And he only raised the minimum to $9.50. malthaussen Jun 2015 #17
The problem, of course, was the GOPers in the legislature. The Velveteen Ocelot Jun 2015 #21
Would have loved to set it to music, anyway.:) n/t malthaussen Jun 2015 #24
We'd settle for it, over on this side Jackpine Radical Jun 2015 #28
Rumor has it that a lot of folks from Hudson got restaurant jobs in Stillwater. The Velveteen Ocelot Jun 2015 #37
I didn't know there were poor people in Hudson. Jackpine Radical Jun 2015 #38
They are less poor now that they work in Stillwater. The Velveteen Ocelot Jun 2015 #39
Well, yes, that would be true. Jackpine Radical Jun 2015 #41
So now all the formerly rich people are homeless, right? valerief Jun 2015 #19
Oddly, they're still here. The Velveteen Ocelot Jun 2015 #22
But we were warned of the mass exodus of the wealthy! SomeGuyInEagan Jun 2015 #23
Oregon also raised the top tax rates and our minimum wage is tied to inflation, currently at Bluenorthwest Jun 2015 #20
$1.2 B surplus?! Nope. Turned out to be $2 Billion. SomeGuyInEagan Jun 2015 #26
You nailed the root cause of Minny's problems. Wellstone ruled Jun 2015 #32
I missed the Arnie years. SomeGuyInEagan Jun 2015 #44
Arnie was not the only player in that time frame. Wellstone ruled Jun 2015 #45
This is great and what we need for the country. Good we have one candidate that we rhett o rick Jun 2015 #33
MN taxes everyone BainsBane Jun 2015 #40
How about Mark Dayton for President LynneSin Jun 2015 #42
And all together now.... DUH!!! Elmer S. E. Dump Jun 2015 #43

Exilednight

(9,359 posts)
1. Raising taxes has been proven to work time and again.
Sun Jun 7, 2015, 08:15 PM
Jun 2015

Our most robust economies happen when we raise taxes and the minimum wage. It allows for growth while reducing, or eliminating, deficits giving consumers confidence.

People fail to understand that markets are psychological as much as they are tangible.

 

hifiguy

(33,688 posts)
2. That's MY governor.
Sun Jun 7, 2015, 08:18 PM
Jun 2015

He is probably the best governor Minnesota has had since Wendell Anderson - the one who was on the Minnesota Miracle cover of Time holding a walleye. Dayton has been terrific for the state. Looking across the border at Kochland, f/k/a Wisconsin, is just terrifying these days.

Kalidurga

(14,177 posts)
5. I was so happy to be able to vote for him.
Sun Jun 7, 2015, 08:28 PM
Jun 2015

This was a case where every vote really did count. And looking at Wisconsin is scary these days, I remember when it was a great state.

 

hifiguy

(33,688 posts)
6. We have a lot of people to be proud of.
Sun Jun 7, 2015, 08:33 PM
Jun 2015

Governor Dayton, Senators Franken and Klobuchar, Representatives Ellison and McCollum just to start with. It makes the winters more bearable.

Kalidurga

(14,177 posts)
7. Yep
Sun Jun 7, 2015, 08:36 PM
Jun 2015

And I think it's going to get better. I remember not to long ago being afraid that the voter ID law was going to pass it was polling with high percentages, but a lot of people got the word out apparently and it didn't pass. I talked to a lot of people at my college, I hope they spread the word as well.

dflprincess

(28,078 posts)
9. I've long believed that the "Time" article about the good life in Minnesota was one of the worse
Sun Jun 7, 2015, 09:35 PM
Jun 2015

things that happened to the state.

All sorts of people were encouraged to move here - people who objected to paying taxes to continue the "good life" here.


Jackpine Radical

(45,274 posts)
31. Ya godda fillet dem different onna counta da Y-bones.
Mon Jun 8, 2015, 12:31 PM
Jun 2015

An yah dem hammer hannels isn't worf da bodder but like ya sez, ya pickilem and da bones goes soft like pikkilt herring.

louis-t

(23,295 posts)
36. We had gar pike where I grew up.
Mon Jun 8, 2015, 01:33 PM
Jun 2015

You could drop a line in any canal around the lake I lived on and eventually catch one. They liked the shallow water, but were fussy about what they hit on. The bullheads, on the other hand.....

HelenWheels

(2,284 posts)
18. Compare property taxes in MN and WI
Mon Jun 8, 2015, 10:16 AM
Jun 2015

MN's property taxes are much, much lower than WI. I don't know how user fees compare.

jwirr

(39,215 posts)
12. We Minnesotans can be very proud. Our state is the example in this country on how to get out of
Sun Jun 7, 2015, 10:02 PM
Jun 2015

the mess so many others are in. And it is not just our economic system. We have great public schools. Wonderful systems for those like my daughter who are disabled. One of the best in the nation. And we care about our environment.

There are problems but we are way ahead of areas like WI and KS.

madokie

(51,076 posts)
13. If you ask me
Sun Jun 7, 2015, 10:10 PM
Jun 2015

this pretty much proves to me that the rich want as many of us to die off any way possible. Why else would they try to starve everyone that they possibly can. This governor raised the taxes on the rich and raised wages and now the people can live like people should be able too and the rich are still getting richer so its not just about the money. This proves the rich have nefarious ideas concerning the poor in this country. Sorry bunch of bastids if ever there was any, in my way of thinking anyway.

The Velveteen Ocelot

(115,702 posts)
16. Dayton is awesome and has done a great job keeping the GOPers in check.
Sun Jun 7, 2015, 11:12 PM
Jun 2015

The latest thing was a sneaky last-minute attempt to defund and privatize certain functions of the state auditor's office - it would have allowed counties to bypass the state auditor's office and hire private contractors. The provision was added to a bill in a secret GOP meeting the night before the regular session was supposed to be over.

"If the Legislature wants to eviscerate that office," he told reporters, "they ought to go to the voters of Minnesota in a constitutional amendment and face up to it that way, rather than trying another end run turning the responsibilities of the state auditor over to private CPA firms, which is again eviscerating that principal purpose of that entity. It's a constitutional office, and I just won't agree to it."


Dayton is insisting that this provision be changed as a condition of calling a special session to finish the budget. http://www.mprnews.org/story/2015/06/02/state-auditor-fight

kenfrequed

(7,865 posts)
25. I love Governor Dayton!
Mon Jun 8, 2015, 11:59 AM
Jun 2015

He is the best thing that has happened to this state in some time. He has already undone a lot of the damage that 'Pawlenty-o-cash' did during his terms.

malthaussen

(17,195 posts)
17. And he only raised the minimum to $9.50.
Mon Jun 8, 2015, 09:46 AM
Jun 2015

... and that is only a promise to do so "by 2018."

Yeah, it kind of figures that increasing taxes would increase revenue. Point being, as cool as MN's recovery is, there is a lot of room for improvement.

-- Mal

The Velveteen Ocelot

(115,702 posts)
21. The problem, of course, was the GOPers in the legislature.
Mon Jun 8, 2015, 11:47 AM
Jun 2015

This was the best he could get them to agree to, and they squealed like pigs the whole time.

The Velveteen Ocelot

(115,702 posts)
22. Oddly, they're still here.
Mon Jun 8, 2015, 11:51 AM
Jun 2015

The mansions on Lake Minnetonka and along Summit Avenue still seem to be occupied. I'm not aware of a mass exodus of rich people. Since the wealthy are now being horribly oppressed here in the People's Republic of Minnesota, you'd think they would emigrate en masse to Scott Walker's Libertarian paradise of Wisconsin. But they haven't. At least, I haven't seen caravans of Mercedeses, BMWs and Lexuses (Lexi?) heading east....

SomeGuyInEagan

(1,515 posts)
23. But we were warned of the mass exodus of the wealthy!
Mon Jun 8, 2015, 11:56 AM
Jun 2015

There was no shortage of GOPers claiming this would push the "job creators" out of the state and how we would all suffer.

Not so much.

 

Bluenorthwest

(45,319 posts)
20. Oregon also raised the top tax rates and our minimum wage is tied to inflation, currently at
Mon Jun 8, 2015, 11:46 AM
Jun 2015

$9.35 an hour. Our unemployment rate is around 5% now, it was higher than 7% a few years ago however.

SomeGuyInEagan

(1,515 posts)
26. $1.2 B surplus?! Nope. Turned out to be $2 Billion.
Mon Jun 8, 2015, 12:01 PM
Jun 2015

That's an article from February ... the revised numbers came out in March:

http://www.startribune.com/with-minnesota-s-first-big-surplus-in-years-everyone-wants-a-tax-cut/296332331/

And now Dayton had to call a special session to get a budget, dealing with knuckledraggers in the leg. Gonna be some more ugly, but he has led us up out of the mess created by Ventura and T-Paw (Dip and Dippier) to a nice view of their damage fro high ground.

My governor rocks!

 

Wellstone ruled

(34,661 posts)
32. You nailed the root cause of Minny's problems.
Mon Jun 8, 2015, 12:36 PM
Jun 2015

Jesse the Ego,was soooooo loveable by sooooo many of those Friday Night Rasselen fans,that he fooled them all. The Guy was nothing more than a shill for Corporate Minnesota.. BTW,Arnie Carlson did tons of damage as State Treasurer and later as Governor. Old Arnie brought Norm the DFL turncoat Coleman to Minnesota and got him a job ironical in the Attorney General's office as Assistant AG to Mark Dayton. If one wants to read what really is going on in Minny,just read Hotdish Politics.

SomeGuyInEagan

(1,515 posts)
44. I missed the Arnie years.
Wed Jun 10, 2015, 02:14 PM
Jun 2015

I was here for a short time in '97 and then back for the long run in 2001.

Now Arnie is presented as a moderate Republican, a call back to a time when there was some sanity in the party. Sounds like that wasn't true, but I do remember such a thing as a moderate Republicans (George HW Bush was pro-choice and is the person who coined the phrase, "Voodoo Economics&quot . Seems so long ago.

 

Wellstone ruled

(34,661 posts)
45. Arnie was not the only player in that time frame.
Wed Jun 10, 2015, 02:29 PM
Jun 2015

We had a Right Wing Nut group out of Brainerd and their leader was Vin Weber. This turkey drank the Bircher Kool Aid. And the rest is History. He and Coleman are at the same Lobby Firm in D.C..

 

rhett o rick

(55,981 posts)
33. This is great and what we need for the country. Good we have one candidate that we
Mon Jun 8, 2015, 12:44 PM
Jun 2015

can count on to work towards this goal.

Don't let the billionaires neutralize our democracy.

BainsBane

(53,032 posts)
40. MN taxes everyone
Mon Jun 8, 2015, 10:42 PM
Jun 2015

My state taxes are half what my federal taxes are, and I am no where close to rich. Pawlenty had so skewed MN's state tax brackets to favor the wealthy that Dayton corrected it. MN is an example of what you get when the population is willing to pay higher taxes, but it's not just the rich. We vote on amendments for higher taxes for schools, the arts, and parks. People should understand this is about the middle-class' willingness to pay higher taxes, not just the wealthy.

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