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Friday, March 7, 2008

Pawlenty and LeVander: Republican Governors and Sales Tax

I am getting too old to understand some things, I guess.

Sales taxes used to be anathema to DFL types while Republicans thought them a creative way to raise government funds. They were, and still are, regressive ways of taxation.

HISTORICAL NOTE: In 1966, Governor Karl Rolvaag promised that as long as he was governor there would be no sales tax. His Republican opponent, Harold LeVander merely promised to veto any sales tax.

After LeVander was elected, the legislature gave us the first state sales [3%, labeled “general excise” for politically euphemistic purposes] enacted. LeVander did as promised, but after vetoing the sales tax, he called the legislature into special session so they could override his veto.

BACK TO THE PRESENT: So it seems a little surprising that Pawlenty today [link] suggested that, even though the state is facing another large deficit, that the sales tax be lowered.

Actually, at first glance, this seems like a better way of getting money that people would spend into circulation than the federal solution [Cf. earlier post] since it sneaks the money in gradually and subtly, but this new Pawlenty idea does make one wonder what will not be funded since we all know that Governor Plenty doesn’t support tax increases of any kind, even crossing the Chamber of Commerce to veto the gas tax for transportation and sales tax for transit bill earlier this session.

Does it make you wonder what audience our governor is playing up to? Is that audience in Minnesota? or is it a specific person from Arizona? or what?

3 comments:

Anonymous said...

Levander?

You’re going back a long way, but thank you. I had never heard that story about how we got the sales tax.

Jim

Anonymous said...

When LeVander ran for governor, it was his first run for public office. It turned out to be his last. He was either too ashamed or too scared to run in 70 and he went back to S. St. Paul. Wendell Anderson was elected and by 72 the DFL was running the state. Of course, they didn’t repeal the sales tax and actually added to it.

Cherokee Park lawyer

R Sammons said...

You may be right about LeVander chickening out, but it seemed to a much younger me back in 1970 that he had just run out of things to do and/or the zeal to do them. I had the same impression about Gov. Quie twelve years later and thought I understood why they both got out.

I wondered similar things about the first President Bush in 1992, but incumbent presidents who are still eligible to run do not not run, at least not in peacetime.

And I don't remember Wendy or Nick Coleman or any of the DFL leaders in 1970 ever promising to get rid of the sales tax. Somehow, taxes, once enacted, tend to linger.