REBUTTAL - Carlson

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Governor Carlson rebuttal to Sen. Marty' s response:

M> Most of this shift has occurred as a result of a half-cent increase in
M> the sales tax that the governor supported to balance the budget in 1991
M> and a 54 percent average increase in property taxes over the last four
M> years.

Sen. Marty is correct.  In 1991, the DFL legislature passed a half-cent
local option sales tax increase in an attempt to pay off the $2 billion
deficit they had created over the previous four years.  Their lack of
budget restraint and failure to control spending was the sole cause for the
budget mess I inherited.  I think it is important to remind my opponent
that the sales-tax increase was initiated by the DFL legislature.  Over the
last two years, my administration has held the line on taxes and we have
turned that $2 billion deficit into a $623 million surplus.

Sen. Marty is also correct in stating that property taxes have increased in
parts of Minnesota.  However, holding the line on property taxes is not the
job of the state.  Rather, local governments must take a serious look at
their budgets and start to  hold the line on spending themselves.
Local governments should follow the lead of the state in this respect.
For example, the state of Minnesota froze public employee salaries for a
year and cut agency budgets by 5 percent across the board.  We have proven
that Minnesota can continue to function without increasing spending.

M> My campaign has pledged to deliver $600 million in property tax relief
M> over the next four years.

Senator Marty's "pledge", is nothing but the same DFL rhetoric that has
been tried in the past, it's simply the DFL attempt to attract the
middle-class.  Every time the DFL has tried to buy down property taxes,
they have raised taxes in other areas.  According to a recent tax study,
Minnesota ranks 20th in the nation for the level of property taxes, but
fifth in the nation in personal income taxes.  The middle-class is not
buying into your "tried and failed" rhetoric.  They do understand that you
are promising to raise income taxes by $600 million in the next two years
at a time when the state has a budget surplus.     What will you do if your
DFL colleagues let spending get out of control again, and we are faced with
another deficit like we had in 1991? Will you raise taxes by a one or two
billion dollars to clean up their mess?

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