Minn. Budget Still Stuck After GOP Tax Cut Offer

ST. PAUL, Minn. (AP) — Gov. Mark Dayton says a Republican offer to drop $200 million in tax cuts they wanted and spend it on his priorities is a “non-proposal” that gets the two sides no closer to a budget deal that would avert a government shutdown in two weeks.

Republicans made the offer to the Democratic governor Thursday. They say it’s a tough move for Republican lawmakers across the board, but Dayton points out it still doesn’t move them above a $34 billion cap for the next two years of state spending they say they won’t exceed. Dayton wants another $1.8 billion to avoid some spending cuts and reductions.

Dayton says he was expecting a more substantive offer and is the most disappointed he’s been after months of budget talks with Republicans.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

More from Pat Kessler
  • Mel

    If you think you can tax your way out of a recession and increase the budget when people are losing their jobs, you need a college course in economics. Give me an example in our history when this has ever worked and I’ll eat crow, take my foot out of my mouth, and grovel at your feet.

    • Reasonable

      Oh Mel…

      You want an example of high taxes creating large wealth? How about, oh I dunno, the industrial revolution to present day? How about low taxes creating prosperity? Still waiting. Just hearing crickets here… How’s the last decade of low taxes (that caused the recession mind you) going for you? Just great huh?

      There needs to be balance. One need not be a Rhodes scholar to see that in the less than 300 years of American history. There’s an ebb and flow between what is good for the few at the cost of the many and vice versa. We’re coming towards the end of a good for the few and heading towards a good for the many at the expense of the few. This last happened after WWII in a time that is sort of memorialized in the eyes of conservatives. Or was it just being happy about segregation and legal spousal abuse?

      • Go Back to England, Reasonable

        @ Reasonable…

        Check your history…
        Carter Years, Carter raising taxes, long lines at the gas pumps, Iran hostage failure, hugh unemployment….
        I’m sorry your not up to date!

      • Not Reasonable with Reasonable

        @ Reasonable…

        The History Channel has repeated it over and over, the real cure to the Great Depression was the WAR. Men were sent off to the front while the women worked in the factories building tanks, planes, and ships. The Government at that time was SPENDING money and keeping taxes low. Families were able to save up and actually spend! Taxes were no cure…

        • Brian

          I second this motion. Dollars then for dollars now, FDR has spent more than any president in history. And what was he doing it for? To stimulate the economy and pull out of the Great Depression

      • TF

        It’s funny because what made this country great was freedom and low taxes, as we have lost freedom and punished succesfull buisness the economy continues to fall. Only an idiot could see how governement could be the best option. Moron

      • Matt

        We didn’t even have a federal tax until 1913 with the 16th amendament, but don’t let facts get in the way of a good story. Idiot

        • Guy

          And THAT was only supposed to be a temporary tax that applied to the “rich” … amazing how that worked out; isn’t it?

          • Matt's Wrong

            so true…

            Matt, your mistake, please try and think before you hit the keyboard keys.

            • Village Idiot

              @ Guy and unlabeled person. Since the start of time a government needs money to operate. If not the people, then the products are taxed. Who do you think pays the tax on the product? The people have always paid for the government one way or another
              Perhaps the two of you would like to think before you hit the keyboard

              • Captain America

                @ Village Idiot,
                You are missing the point, smaller government is the key to prosperity not how it is taxed. The last balanced budget was under Andrew Jackson’s Presidency. Gov. has a role to defend and protect and stay out of the way of the US people. Thats freedom and the free markets will develope prosperity for all.

                • Citizen

                  @Captain America. The smallest governments in the world are in third world countries like Somalia–certainly one of the most prosperous countries in the world–NOT! The last balanced budget was under the Democratic President William Jefferson Clinton–there was even a surplus which the GOP buffoon George W. Bush promptly blew on tax breaks for his wealthy buddies. The free markets have long been eschewed by the GOP. They don’t exist any more. All business lives off government tax breaks, loopholes, incentives, and props.

                • Captain America

                  @ Citizen
                  check your facts as the Deficit rose under Bill Clinton. The Gov. borrowed billions from Social Security to give the illusion of a balanced budget. Info available on gov. websites.

        • Reasonable

          Ahh so you’ve proven my point! Prior to 1913 were we a world super power? Hardly.

          Unfortunately the current war won’t be able to float our economy as we have too high of a population to war effort ratio.

          I’m not suggesting that govt is the best option if that was directed at me. However, there needs to be balance.

          I’m still curious how anyone can defend the tax tier changes in the early 2000’s though. How have things improved from 1996 to 2011? They haven’t. Now, if things have gone downhill since the last tax reduction, how are they supposed to magically get better with yet another tax reduction.

      • Downsize Government

        Why do we need to raise taxes? The private sector was downsized in the start of the recession, but governments were spared through borrowing. Now it’s time for government to share the same downsizing. It’s only fair.

        Raise my taxes so government is spared and I’m moving my business to a warmer climate with no income tax.

    • I'll try

      Warren Buffet once said that he paid 19% of his income in total federal taxes while his employees paid 33% of theirs despite that they made much less money. He asked, “How can this be fair? How can this be right?” He went on to say that, “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”

      The argument that we should not raise taxes in uncertain economic times will put us in a recession was also said back in 1993 when we were told that raising taxes would create a depression. Tax rates were increased and instead of economic doom we got an economic boom. Throughout our history we have seen just about as many tax increases during a recession as we have seen tax cuts. In some cases there was a drop in GDP and in others there was an increase in GDP. There is little evidence to support the contention that changing the top marginal rate tax policy during a recession does anything to affect the economy.

      I take the side of Buffet, it is not fair and it does not seem right that the top 2% is taxed less when they make much more money and that those who make much less pay more in taxes. After Buffet said this our government gave him more tax decreases. Our arm chair economic quarterbacking needs to be in check with facts rather than claim we know.

      • richard

        Wow! Someone with actual FACTS! Good try but these repub morons do not want to be confused with the facts.

      • I pay too much taxes already

        If you want to pay more, go ahead.

        • Nelson

          Proving Richard correct

      • bob

        lifes not fair. get a helmet. i don’t work hard so some government know it all can take my money and give it to someone else, or better yet some other country’s military in the form of financial assistance. you raise taxes on the upper class and it eventually ends up raising prices and taxes on the rest. everything is passed on to the consumer. how about this … the government that got us into this mess just gets out of the way and lets the private sector do its thing.

    • Conserve

      Has anyone considered Dayton’s mental health? He looks empty and it appears that no matter what the conservatives offer, he simply wants a bigger government.

      • Joe Hanson

        @conserve No but we are willing to consider mental Health.

    • Matt

      Mel, this isn’t about anything more than the unions. The GOP could give up every demand but unless they are giving more money to the unions Dayton won’t budge. Typical bought and paid for liberal with no idea how an economy works.

      • Beer Guzzling Redneck

        “The GOP could give up every demand but unless they are giving more money to the unions Dayton won’t budge.”

        Please qualify this statement. Thanks.


    The right wing neocon’s blinked first. This isn’t WI, you can’t have your way. As they say in the mines of TN. “shut er’ down”.

  • Big Ed

    Dayton does not have a clue as to economics. Tax the rich has never worked and won’t work here. I am not in the 2% He needs to get off his high horse and face reality. I agree with Mel above

    • What???

      So to be a GOP supporter you must have to be an economics major I guess because all of you seem to know more about it than everyone else. All the posts on any of these stories that support the right side say that Dayton has no idea what he is talking about. So all of you must be accountants or investment bankers then? I would have to assume this is true since you seem to all know exactly what is needed to be done yet never actually say what it is. 1s again, 1 talking point and it is all the same. I have not even heard any of you say the word compromise 1 time yet the Dems that are posting seem to have that all over the place. Like little children fighting, you just have 1 hissy fit and that is supposed to prove your point. So since the GOP wants something they should be able to give and take. If they do not do this what good is democracy in the 1st place? That is why we have the checks and balance, so 1 side does not get everything they want and the other gets nothing. Keep talking about how the Dems in WI ran away crying but do not look at how the GOP is just stomping their feet and crying here. Hard to take the same medicine you try to shove down other’s throats?

      • Compromise

        I proposed to raise YOUR taxes 10%. You say, no way in hell. I say let’s compromise and only raise your taxes 8%. Now someone on the right has said it.

        Governor Dayton’s use of compromise is a political bait and you fell for it.

        • What???

          @ Compromise
          First of all you state “I proposed to raise YOUR taxes 10%”, since you have chosen to use past tense I have to ask when you proposed this? The other part of this is that you completely missed the point of compromise and show that you do not have the intellect to be in a conversation like this. As to the political bait, if you cannot see the hypocrisy in the GOP right now the bait was not there for me anymore, I don’t want to point fingers but you have something on your face. You have no point in your comment at all except to bait someone into an idiotic fight that will not accomplish anything. You must be another GOP troll that just wants to stomp their feet and cry as I pointed out earlier. It is better to be thought of as a fool than to open your mouth and remove all doubt. A little late for you but we can use this as an example for others.

          • Captain America

            The proposed budget is 6% more than last year and Dayton wants to propell us higher another 9%, You could consficate all the wealth from the top 2% and you could not balance the budget. Dayton does not know how to manage and should prioritize is programs and readjust the current 34 billion budget. He is out of touch to request extra taxation and spending when we are all hurting. The Repubs offered an extra 200 million and Dayton scoffs at them. He is extreme and is bad for Minnesota.

            • What???

              @ Captain A
              He is so out of touch with MN because he wants to raise taxes? So that is not what he said multiple times when he was running for the job? Are you saying you had no idea that he wanted to do this? If so you may want to pay closer attention as this was his platform that he would raise the taxes on the top 2% of the state. He did not hide this and you idiots need a new talking point as this is all you have said since he took office (that and you think Gov google eyes is an insult for some reason) so maybe take a lesson from what happened in WI and you all were saying “this is what Walker ran on and now you are all crying” and then you all do the same in this state. 1s again a do as I say not as I do moment huh?

  • Ronald Raygun

    Tax the rich, tax the effin h out of them!!

    • TN JEDD

      “Eat the Rich” – Aerosmith

      • Reasonable

        But they’re rich! Aerosmith that is…

    • OH Peanut Boy


      Carter was worse, he lost by a landslide. I remember kids on the bus laughing at his loss!!

      • Guy

        “Ronald Raygun” (a twist on Reagan) is a TROLL. 1st rule of the internet (goes back AT LEAST 20 years) “Don’t feed the trolls”. Ignore them & they go away. Feed them & they multiply.

    • Dayton needs to pay his fair share

      Let’s start with our Governor! Let’s do away with his South Dakota tax shelters!

      • What???

        Dayton needs to pay his fair share
        Another moron that has no idea what a blind trust fund is. It is not even fair to have a conversation with people like you as you cannot argue with stupidity.

  • Bill

    They cave in. Vote them out.

  • GOP eats children

    I wonder what 2% of Minnesotans will not feel a thing from a government shutdown.

    • Ronnie

      mark won’t feel a thing…
      unless someone goes postal

  • Destin to fail!

    ONCE again…proof the GOP is doing what they CAN to make this work with gov DIM WIT in office!

    Again…Dayton is PROVING to the world he has NO CLUE!

    You Dayton supporters have NO foot to stand on now! Not like you had one to stand on prior to this….but again…proof is in the “puddin” and the “puddin” is in Gov Deer in the headlights head!

    Time for a recall…..

    • Tired of Tea Party illiterates

      Cuz the GOP has “compromised”. You are delusional, “Destin to fail”. And you can’t spell.

      • you tell him!

        You told him! What a moron. Doesn’t he know that proper spelling is rule number one when expressing an opinion? He should know that there’s people like yourself out there who can’t comprehend something unless the spelling and grammar is absolutely flawless.

      • Captain America

        The Gov is the one whom refuses to comprimise. Stand strong GOP, Send the Gov. packing.

        • Beer Guzzling Redneck

          This is hilarious. Anybody remember the Bugs Bunny episode that you’re acting out?

          It’s Duck season!
          No, it’s Rabbit Season!
          Duck Season!
          Rabbit Season!
          Rabbit Season!
          Duck Season, FIRE!!

      • Tea is an eedeeit

        Well…I can’t hide behind this one…….I have family in DESTIN Florida and my phone auto corrected…..

        BUT…I guess…I would have cut on you too if it were mis-spelled!

        I’ll used “destined” next time……

        So “tired” it’s not a matter of being “illiterate”…..it’s more of a matter of using the wrong word! But why would I expect you to be smart enough to know there is a Destin FL…..

        Maybe this was a play on words…..you see…if it was an “illiteracy” issue…”Destin” would not be a word! If I said “destan” to fail….then…you see…it would be “illiterates” as you have stated…..

        But what can I expect from you pompous, self-righteous, egotistical, left wingers that feel entitled to everyone else’s money……

    • StraycatStrut

      Gov oner DemaDumb is not looking real healthy here after his 5 full months in office. The concussion helmet he wears to work each day is just to tight. He needs to work with the people, so people can keep their jobs and the State resumes work without shutdown. Get him off his high hostage horse with goofy unworkabe idealogy.

  • Sam I am

    It wont be the lower 2 percent because welfare checks and food stamps will still go out.

    • Conservative

      Sam I am …”.IIt wont be the lower 2 percent because welfare checks and food stamps will still go out.”

      oh you checked that your checks will still be coming in.

    • overthisbs

      um actually they may not. the state distributes them through the county, so don’t count on it.

  • just and Average Joe

    The Democrats say the only way out is to raise taxes. When will they stop the insanity. If we believe as Governor Dayton does, then in the year 2525 when we are paying 60% taxes and we have economic problems, all we have to do is raise the taxes (AGAIN) to 65% and all will be fine.

    • What???

      just and Average Joe
      You are really going to try and use an equation that is 514 years in the future and you think we are the ones with problems? I do not know about you but this seems like a “problem” we can wait to fix if it will take that long. Any thoughts for next year or are your predictions only good 5 generations down the road? Hey my great, great, great, great, great, great grandkids would not mind some lotto #s if you could please.

      • get it?

        What he’s saying is that governor Dayton’s method will not work even if it continues to be used for the next 500 years.

        • What???

          get it?
          I understood what the comment was and was having fun with it. I do not understand your comment as you must have overlooked the concept of sarcasm. I am very sorry for having that one go above your head. Next time I will not give the reader credit and I will spell it out with the smallest words possible. Thank you for stating the obvious and I will try not to disappoint in the future.

          • Village Idiot

            They don’t get the simple words, either. Facts don’t help much. Mantras seem to be what they respond to.

  • FlatTaxIsFair

    I want economic equality in regards to tax. It isn’t fair that people making less then me get to keep more percentage wise, just the same as it is not fair that people making more then me have to pay more.

    I want a flat tax with very basic deductions. Treat everyone the same, right??

    • Reasonable

      The wealthier you are, the less you pay in taxes. You can hide your income in investments and pay only 15% on them, you can deduct your mortgage/charitable donations/etc…

      Also, your intent may be clear with a flat tax, but do you realize with the amount of income disparity that we have, the wealthy would pay more % in total taxes than they do now? Basically, how many of you and me would it take to cover Joe Mauer’s income tax liability? Probably somewhere around 160-200 I would imagine… With what, 3 million people in the state and roughly 40k “wealthy” people, it’s not really going to cover this gap that you think exists.

  • Billy

    Shutter Down!!!

    Dayton has no bargaining chips! A shut down is going to hurt Democrats way more than it will hurt Republicans… Everyone knows state employees vote primarily Democat!

    • Dave

      Dayton has been offered deal, after deal and no signing.

      State employees, sorry, you have a boss “Governor” who has had several opportunities to save your job and he’s passed it up.

      By the way, he’s awfully interested in a new stadium, how ironic, a great deal for a wealthy CEO and for the folks at the State, a layoff notice!!

      Just over half of Minnesota voted for the “Governor”. I wonder what the next election will be like!! What a Leader!!

      • Fact checker

        Only 44 % voted for Dayton the rest was spread among the other 2 candidates

    • Beer Guzzling Redneck

      And everybody knows that everybody uses these services.

      You don’t think with your entire brain.

  • richard

    Why shouldn’t the top 2% of earners not pay at least, the same % of their income as working people? We pay about 11% and the wealth pay about 9%. What’s fair about that? These data is from the state of MN. The Gov. is correct.

    • Really Richard??

      Hey Richard,

      your wrong on the numbers, some folks are paying close to 40% in taxes.

      The City of Denver lost Frontier Airlines to another city. The CEO of Frontier mentioned the corporate taxes were really high. There were layoffs at Frontier, the good news in all this, the folks who proposed high taxes were not relected!!

      You see, there are happy endings

      • Really?

        Delaware charges no income tax on corporations not operating within the state, so taking advantage of Delaware’s other benefits does not result in an income tax cost. Frontier Airlines did move to Delaware not because of taxes in Colorado, they moved there to take advantage of Delaware General Corporation Law along with other reasons, none of which was because Colorado taxed them out.

        • Really, Really, Really


          Your mistake, see below, fact presented below…

  • Cyrus

    It’s interesting to see that the only intelligent, fact-based, rational comments are made by Dayton supporters, while the ignorant, right wing buzz word filled comments are made by republican supporters. But I have to hand it to the republicans. They are somehow able to convince a lot of people to support their oligarchic agenda and get millions to vote against their own self interest. Brainwashing or just pure genius?

    • Molly "Cyrus" may I presume?

      Dear Genus…

      Dayton has showed more sympothy for a ONE wealthy CEO who wants to build a new Vikings Stadium, then for the thousands of employees who will soon be let go from their job. .

      if you call that “Genius” tell me more… Dayton is sounding more and more like “right wing” supporter.

      Can I call you “Simpleton”?

  • @ Cyrus

    Huffington Post 1/14/10

    MINNEAPOLIS — Republic Airways Holdings Inc., which bought Frontier Airlines and Midwest Airlines last year, says it will move all of its executives to its base in Indianapolis as it further consolidates its two new airlines.

    I guess supporters of Dayton are not “genius”. Otherwise “Really?” would have been “correct”

    Cyrus – you offered only your opionion, do you have any facts?

    • Really

      Actually I think I am right. They did not leave Colorado because of taxes.

      • Sheryl

        @Really –

        60 Minutes did a segment on why US Corporations are moving overseas. The CEO of major corporations are saying ON AIR, the corporate tax rate is too high.

        Other countries are advertising their LOWER TAX RATE so they can move US CORORATIONS OVERSEAS.

        Dayton’s style of thinking of taxation is what is going to hurt the state’s economy.

      • We need to Cut Taxes
  • Oh Cyrus...


    Can you tell us how many what the impact, financially, will be on the State of Minnesota with the layoffs.

    Try to include the loss of income tax, from one of the Minnesota’s largest employers.

    With the layoffs, it’s almost a known fact that laid off Minnesota employees will be cutting back on their spending. That being the case, how will this affect the private sector.

    So far, WCCO has not presented Dayton on air, showing his support behind the employees, if you think this incorrect, please, tell me when (approximately) he showed any sympothy to the employees of Miinesota, on air… please enlighten me.

    • Democratic Supporters

      Dayton Supporters??

      Senator Weiner?
      Bill Clinton?
      Hatch Girls?
      NY Congressman Charles Rangel?
      John Edwards?
      Michael Skakel?
      Ted Kennedy?

      • Village Idiot

        Republican supports Hecker, Madoff, Petters. Robin Hoods in reverse.
        Nixon with Watergate, Oliver North and Iran Contra. Have we found George W’s WMDs yet. What is Trent Lott doing theses days? SO we have thieves and liars in the GOP. Look at Newt cheating on his second wife to end up with a third one.

        • Citizen

          @Village Idiot. You forgot that Rethuglican supporter of prostitutes, David Vitter. Reelected by 54% of his constituents.

  • Leah

    Dayton doesn’t want to compromise at all. He wants a shutdown.

  • Try harder

    This will be Daytons fault. The responsibilty rests with him.

    • Beer Guzzling Redneck

      Republicans say it’s Dayton’s fault. Democrats say it’s the Republicans’ fault.

      And you each arrogantly crow it as loudly as you can, without realizing you’re both wrong.

  • Independent voter

    The Republicans have offered several deals and all have been rejected. I agree with many other posters here, Dayton wants a shutdown.

    • Citizen of Minnesota

      @Independent voter. Yes, I believe we should shut down government–but all of it completely. No police, or fire, or state troopers, or anything. Open the doors to the prisons–let them go. No road repair, no inspections of water quality or utilities. Let the private sector have at it and watch the disaster that follows. That will equal zero taxation for these conservatives who don’t want to pay taxes and will be a horrifying lesson to them. Obviously, they learned nothing in history class about anarchy and the need for government.

      • Captain America

        The problem is the State of Mn is spending too much in relation to our GDP. When a recession hits the State should cut back and when the econmomy grows it willl have more revenue. The State has shown an inability to manage itself and our Politicians must take a stand and hold the line with no more taxes or we will be in a state of bankruptcy like CA. No shutdown is necessary, a balance budget has been presented, the GOP has offered a comprimise and Dayton still refuses to sign unless he gets an additional 9% He is extreme and out of touch.

        • Citizen

          @Captain America. Only very HARD lessons teach conservatives what they should have learned in junior high/middle school. They can’t seem to learn from being politely informed of facts and history so they will have to learn by a horrible example.

        • Citizen

          @Captain. As for Clinton borrowing from social security–I believe that was a trick started by LBJ back in the ’60’s when he proposed a “unified budget.” Before that Medicare and Social Security funds were separately accounted for. Congress signed off on this unified budget, and then Ronald Reagan doubled workers contributions to social security–even though at that period in time the money was not needed. He used the ruse that it would be needed later on (still not needed), but the money was then used under the “unified budget” principle to make the federal budget look better than it really was. This doubling of the social security tax was a tax raise on MIDDLE Americans that helped balance the federal budget in favor of the rich because the rich don’t pay social security. At that time it allowed Reagan to lower the 70% income tax rate on the rich quite significantly and still show a balanced budget. You need to read “America: Who really pays the Taxes.”

  • Jason

    Dayton is a loser. Do your job. Or step down so someone else will.

  • Hank

    Governor Dayton is an obstructionist who can’t cooperate with the legislative branch.

  • SB

    How about we don’t shut down the government but force the Gov and Legislature to pay for keeping the government going out of their own bank accounts until they all grow up and actually work together towards a solution. Maybe then all of them will stop whining and yelling and do what WE are paying them to do.

  • Common Man

    Gov. Dayton is Extreme,

  • kevin

    When the state shuts down it’s time to start a recall election for govener deer in the head lights.

  • Citizen

    I’m wondering how the GOP can pay for all the ads being run on TV when they can’t pay their $500,000 plus debt from last November’s election? Paying on credit again? This party can’t balance its budget and pay its bills and it’s dictating to Governor Dayton about balancing Minnesota’s budget? Are all the conservative posters on this website helping contribute and pay that $500,000 plus debt? Before the GOP dictates to Minnesota, it needs to pay its own bills–PERIOD. Oh, and by the way, is Amy Koch any relation to the Koch Brothers of the billionaire Koch Brothers?

  • Citizen

    And, also, since all you conservative posters love to call Governor Dayton names, here’s a comment for you all. Amy Koch really should have a “WIDE LOAD” sign hanging off her rear because it is huge and really terrifying! Passing her in the hall could cause bruising. If she skipped a few meals in the State of Minnesota dining hall we probably could balance the budget. Let’s just bring this discussion right down to the bottom like you conservatives love to do. LMAO!

    • Drunken Dissed Orderly

      I love me a big caboose! Yeah!

    • KEVIN

      I’m calling people names PLEASE READ YOUR POST

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