Minnesota’s Budget $1.2 Billion Surplus. What to do?

What happens when Minnesota Democrats get control of the state’s affairs?  We get out

The Minnesota state seal.

of the fiscal trap of systematic mismanagement and find ourselves with a budget surplus.  But I won’t dwell on that.

Instead I want to comment briefly on the GOP’s idea that we refund the $1.2 billion to taxpayers.

Valid arguments for and against this can be debated.  Personally I think it is obvious that keeping accounts in reserve is a good idea.  I also think we should be investing (yes, spending) more now anyway.  The economy needs it.  But I don’t really want to comment on this either.

Governor Mark Dayton

Governor Mark Dayton 

Instead I want to point out that if the logic of refunding a surplus is valid, isn’t the inverse as valid?  When funds come up short, shouldn’t we then increase taxes?

In keeping with an anti-government approach to governing, Republicans would never follow that line of thought.  Even surpluses are signs that government is bad.  Good news turned to bad.  And any deficit is ruled as a sign that government is too large and perhaps corrupt.  The solution?  Cut, naturally.

The bottom line — literally — proves that we don’t have to cut.  Cutting is a political decision, not an economic one.  We are only broke when we choose to be.  We only run a deficit when we choose it.  This surplus proves it.  And if we allow the economy to grow, tax receipts will grow with it.  The true “trickle down” solution to our economic problems.

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One thought on “Minnesota’s Budget $1.2 Billion Surplus. What to do?

  1. Pingback: What Should Minnesota’s Budget Surplus Tell Us? | A Little Tour in Yellow

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