(S)ix months later, Pohlad and Co. got their wish. The $2 billion that they saw as necessary for "real prosperity" appeared. Last week, Pawlenty announced a state budget surplus of $2.17 billion. And not one Minnesotan had to pay higher income tax rates.
The surplus sprang, in large part, from a strengthening economy, according to the state Finance Department and news reports. Corporate profits and tax collections have soared to their highest levels in decades.
For the Gang of 200, it's a teachable moment. These folks assumed that to get more money for government programs, you have to raise tax rates. In fact, to get higher revenues, you often need to lower tax rates and stimulate growth.
04 December 2006
Easy Enough For Children to Grasp
Problem is - the house and the senate aren't filled with children, it's filled with Democrats: