Rebuttal from Mike Hatch:
On Monday, October 16, many homeowners will be paying their second half of the year property taxes. For the last four years, Minnesota homeowners have bore the burden of extreme property tax hikes under Governor Pawlenty.
Property taxes are one of the most regressive forms of taxation as they hit middle class and lower income homeowners the hardest. As Governor, I will work diligently for local property tax relief so homeowners are not taxed out of their house and homes.
Under Governor Pawlenty, property taxes have increased by 59%.
Total Homestead Property Tax Collected
FY 2002 - $1,871,272,447
FY 2006 - $2,975,871,864
Total # of Homesteads Taxed
FY 2002 - 1,326,153
FY 2006 - 1,399,782
Average Homestead Tax
FY 2002 - $1,411
FY 2006 - $2,126
Growth from FY ‘02 to FY ‘06 - 59.0%
- All Data from MN Dept. of Revenue Abstract of Assessments & MN Dept of Revenue Abstract of Tax Lists
As the chart below describes, previous Republican, Independent and Democratic Governors over the last 35 years have not put homeowners at risk through such large increases.
Name and Term of Governor(s) - Growth in Net Property Taxes Over 4 Years in Nominal Dollars
(Source: MN Dept of Revenue)
Governor Anderson (1971-1975) - $143.1 million
Governors Anderson/Perpich (1975-1979) - $297.6 million
Governor Quie (1979-1983) - $642.6 million
Governor Perpich (1983-1987) - $653.4 million
Governor Perpich (1987-1991) - $948.3 million
Governor Carlson (1991-1995) - $818.6 million
Governor Carlson (1995-1999) - $329.6 million
Governor Ventura (1999-2003) - $429.1 million
Governor Pawlenty (2003-2007) - $1,672.8 million
(includes estimate for 2007 based on MN Dept of Finance Data)
Governor Pawlenty has already raised taxes by $2,981 per household based on his own data if you include increased taxes, fees and college tuition increases. If you don’t adjust these numbers for inflation, the figure is $6,827 per household.
Middle class families are finding it harder to make ends meet because of skyrocketing health care costs, increased college tuition, and excessive property tax increases.
Over the last four years, middle-class Minnesotans have also seen:
* Health care out of pocket costs increase by over 50%.
* College tuition increase by more than 50%.
* User fee increases of over one billion dollars.
Again, my top four priorities as Governor for addressing the middle class squeeze are the following:
* Reduce Health Care Costs⎯I will work to make health care more affordable because the cost of health care should not make Minnesotans sick. As Attorney General, my audits of HMOs and hospitals showed that up to 40% of our health care dollar is wasted on overhead. As Governor, I will work to ensure that we reduce health care costs so that middle class Minnesotans are able to afford quality health care.
* Make College Tuition More Affordable⎯I will close a $300 million tax loophole that allows corporations to hide profits overseas, and I will use every dollar of savings to rollback college tuition. By the end of my first term in office, I want to ensure that every Minnesotan who wants to attend college will not use cost as an excuse.
* Provide Property Tax Relief⎯ Property taxes are one of the most regressive forms of taxation as they hit middle class and lower income homeowners the hardest. As Governor, I will work diligently for local property tax relief so homeowners are not taxed out of their house and homes.
* Support All Day Kindergarten—Our children should not suffer a learning gap because we did not adequately prepare them and educate them for life as an adult. Investing in early education is the best and most cost effective way to address the achievement gap.
Besides closing the Foreign Operating Corporation tax loophole, which will recover $300 million to roll back college tuition, I will pay for the initiatives above by aggressively pursuing the collection of over $1 billion of uncollected state taxes that the Legislative Auditor reported to the Pawlenty Administration. The Legislative Auditor’s report has been all but ignored by Governor Pawlenty.
Through initiatives like the ones above, middle class Minnesotans will begin to feel less pinched and more secure.
Candidate Website - www.hatch2006.org
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