Tax debate breaks out in Legislative committee

Two of the Legislature's most ardent advocates sparred over tax policy today in a manner that could preview the 2012 Legislative elections.

The row between Rep. Pat Garofalo, R-Farmington, and Rep. Tom Rukavina, DFL-Virginia, came as the House Taxes Committee was discussing a bill that has divided the two parties. The Republican plan, sponsored by the committee chairman, Rep. Greg Davids, R-Preston, would grant property tax relief to businesses and reduce relief for low-income renters.

During debate on the bill, Garofalo became fed up with DFL attacks on Republican tax philosophy.

"You're not going after corporations or big businesses," Garofalo said. "Democrats do the same thing they always do -- they go after the middle class and sock it to them, because that's where the money is.

"You don't want lower property taxes," he added, his voice rising. "You want to stick it to the middle class like you always have. That's why we're in charge of this place and you're not."

Republicans control both the House and Senate for the first time in nearly four decades. All seats are up for re-election in November.

"Don't sit across the table and preach to me about property taxes," Rukavina said. "You look -- there's been one constant factor when property taxes escalated in Minnesota over the last decade. And it's been either Sviggum or Pawlenty...." He referred to former House Speaker Steve Sviggum and former Gov. Tim Pawlenty, both Republicans. "That's when the property taxes went out of control in this state."

Rukavina said former Gov. Pawlenty vetoed proposed DFL income tax increases. "Every Democrat but one voted for an income tax increase, because it's the fairest tax on the wealthiest Minnesotans," Rukavina said. "They're the ones that have gotten the break on the federal level by George Bush. They're the ones that have gotten the break on the state level by Tim Pawlenty and Steve Sviggum."

Garofalo referred to a DFL-passed bill when the Democrats were in the majority that, he said, "stuck it to the middle class. You guys even went after the tax credit for organ donation. So what's your fair share argument there, Mr. Rukavina? The people who are donating kidneys in this state aren't paying their fair share to the state of Minnesota?"

"If you guys get control of the House and Senate with this governor, it's Katy bar the door. You are going to drive this state into the ground. It terrifies the businesses, the employers, and the employees of Minnesota, what you guys would do with a blank check and no foot on the brake pedal.:"Gov. Mark Dayton is a DFLer who supporters higher taxes on upper-income Minnesotans.

Rukavina, his voice rising, called the income tax the "fairest tax," and said Republicans "stick it to people that don't have the wherewithal to pay their property taxes....

"And we can see bills around here this year, trying to undo unions. Trying to take away the middle class. The last time we had a Great Depression in this country, one percent of the richest people controlled 24 percent of the wealth; and when unions came in, under my hero, FDR, it got up to one percent of the richest controlling only 10 percent of the wealth.