Trickle Down is Bunk - Proof is Minnesota

[djsunyc]

http://www.huffingtonpost.com/carl-gibson/mark-dayton-minnesota-economy_b_6737786.html

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When he took office in January of 2011, Minnesota governor Mark Dayton inherited a $6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota’s first true fiscally-conservative governor in modern history. Pawlenty prided himself on never raising state taxes — the most he ever did to generate new revenue was increase the tax on cigarettes by 75 cents a pack. Between 2003 and late 2010, when Pawlenty was at the head of Minnesota’s state government, he managed to add only 6,200 more jobs.

During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly — a tax increase of $2.1 billion. He’s also agreed to raise Minnesota’s minimum wage to $9.50 an hour by 2018, and passed a state law guaranteeing equal pay for women. Republicans like state representative Mark Uglem warned against Gov. Dayton’s tax increases, saying, “The job creators, the big corporations, the small corporations, they will leave. It’s all dollars and sense to them.” The conservative friend or family member you shared this article with would probably say the same if their governor tried something like this. But like Uglem, they would be proven wrong.
Between 2011 and 2015, Gov. Dayton added 172,000 new jobs to Minnesota’s economy — that’s 165,800 more jobs in Dayton’s first term than Pawlenty added in both of his terms combined. Even though Minnesota’s top income tax rate is the fourth highest in the country, it has the fifth lowest unemployment rate in the country at 3.6 percent. According to 2012-2013 U.S. census figures, Minnesotans had a median income that was $10,000 larger than the U.S. average, and their median income is still $8,000 more than the U.S. average today.

By late 2013, Minnesota’s private sector job growth exceeded pre-recession levels, and the state’s economy was the fifth fastest-growing in the United States. Forbes even ranked Minnesota the ninth best state for business (Scott Walker’s “Open For Business” Wisconsin came in at a distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton’s tax cuts, 6,230 more Minnesotans filed in the top income tax bracket in 2013, just one year after Dayton’s tax increases went through. As of January 2015, Minnesota has a $1 billion budget surplus, and Gov. Dayton has pledged to reinvest more than one third of that money into public schools. And according to Gallup, Minnesota’s economic confidence is higher than any other state.

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[guillaumeb]

1. Trickle down is the current philosophy in Kansas.

Cutting taxes turned a budget surplus into a deficit, with lower job growth and GDP than surrounding states.

[tblue37]

2. And compare that (and CA) to Kansas. nt

[The_Voice_of_Reason]

3. Trickle down

should be called what it is...tinkle down.

Not sure about the rest of America, but I am tired of being pissed on by the Uber Rich. Their money may make/create jobs, but it is the American workers, our blood sweat and tears that create the products, provide the service that creates their profits, and thus their wealth.

[secondwind]

6. They hoard... they are not interested in creating jobs, and paying salaries, benefits, etc., they

just want GOBS of money

[Akacia]

4. Its not rocket science.

I will never understand why it seems so hard for people to understand that we need a vibrant middle class for everyone to succeed.

[Qutzupalotl]

8. The talking heads desperately WANT trickle down theory to be true

and they brainwash the masses that it is.

Those who can still think for themselves have many examples they can point to now, both trickle-down failures and the success of those states that have abandoned this delusion.

[sab390]

5. The disconnect

Louisiana, Kansas, Wisconsin are basket cases. Minnesota, California are doing great. Wisconsin is right next door for crying out loud. And they voted Trump. Doing well doesn't seem to matter. It's madness.
And the number of millionaires in Minnesota went up.

[aggiesal]

7. Additional basket cases ...

Michigan, Ohio and Maine.
Additional 3 each have a loud mouth crazy conservative governor
espousing these same tinkle down economics with their citizens who
continue to vote for these idiots and wondering why their jobs are
disappearing.

[LWolf]

9. We've known trickle-down was bunk for 3.5 decades.

It's not exactly news. Those of us who survived Ronald Reagan have been very clear on that for a very long time.

[uponit7771]

10. 3.6 UE rate is crazy and now has a 1 billion budget surplus