Reader Opinion: No free lunch
I see Rep. Lueck proposed a fix to transportation funding, which would be a good thing as more efficient vehicles use less fuel so fuel taxes have fallen. This creates another problem - loss of revenue for other important purposes. There is no fr...
I see Rep. Lueck proposed a fix to transportation funding, which would be a good thing as more efficient vehicles use less fuel so fuel taxes have fallen. This creates another problem - loss of revenue for other important purposes. There is no free lunch, everything has to be paid for. We have several problems that will require money: old infrastructure, an aging population, education problems. We can look to Wisconsin for help with the teacher shortage. With the governor there trying to turn Wisconsin into the Mississippi of the north by cutting education and transportation funding, as the roads deteriorate further and new ones aren't built, business will continue to move to places where there is progress. It is notable that the Twin Cities is a magnet for young people, as there are jobs there, especially high-paying jobs, for educated people. Minnesota taxes pay for infrastructure and education, which creates a climate for jobs. Laffers Curve works when all other things are equal; when they aren't taxes are just one consideration, not the only consideration.
We have a leader who is calling for giving back the extra money that the state has collected in taxes, before the new budget is figured. He's not ignorant. He knows that it costs money to collect taxes and it costs money to send them back, then borrowing money to replace this money when it's needed costs money and we have to pay interest on this money. Those espousing this plan aren't looking out for the people or the state, they are pandering to the ignorant and those in the financial industry that stand to make money on bond preparation and marketing. When the state borrows money it costs to do the prep for the bonds and the marketing of the bonds isn't free.