RESPONSE - Olson

Jack Stecher (stecher@Free-Net.Mpls-StPaul.MN.US)
Wed, 26 Oct 1994 12:43:22 -0500 (CDT)


ERIC OLSON on Question 2:

For every $1,000 in income, Minnesotans pay an average of $41 in property
taxes, $26 in sales taxes, $14 in excise taxes, and $35 in income taxes.
The reason for these high tax burdens:  Minnesota's state and local spending
is nearly a quarter of personal income.

Minnesotans need across-the-board tax relief.  My concern is not so much
the tax mix as the taxing and spending levels.  We need to cut taxes by
cutting the scope of our state government.

To do this, I advocate opening all government services to privatization and
competition--let those who can provide government services most efficiently
and at the lowest cost do so.  Also, every program should face sunset
legislation, so that programs that have failed or served their puropse can
be eliminated.

The main change in the mix of taxation I advocate is a greater reliance on
user fees.  Those who take advantage of government programs should be the
ones to pick up the tab.

Finally, Minnesota must avoid the mess the federal government is in with
entitlement spending.  We need to repeal MinnesotaCare, and focus health
care reform on alternatives that take the issue out of the government's
hands, such as establishing medical savings accounts and deregulating
alternative practices.

Only by gaining control of spending can we control taxes.