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State Representative
Phil Krinkie

365 State Office Building, 100 Constitution Ave., St. Paul, MN 55155 (651) 296- 2907

For Immediate ReleaseFor more information contact:
February 26, 1999Chris Harris (651-296-9719)
NEWS RELEASE
REP. KRINKIE AND SEN. RUNBECK RENEW CALL FOR SUBSTANTIAL, PERMANENT TAX CUTS

ST. PAUL On Friday, and for the ninth consecutive time, the State Department of Finance announced a budget surplus. The surplus is projected to be a total of $732 million spread over two years.

Rep. Krinkie (R-Shoreview), after learning the amount of the surplus, repeated his call for substantial, permanent tax cuts. "This surplus is just another indication that the tax structure is out of whack in this state. Nine consecutive surpluses should be enough to sway even the most ardent tax cut opponents. There is overwhelming support by the people for permanent tax cuts."

Earlier in the week, Rep. Krinkie and Senator Linda Runbeck (R-Circle Pines) joined other legislators in supporting a sweeping tax reduction plan. The plan includes car tab fee reduction to a flat rate of $35.00, elimination of the marriage penalty tax, elimination of the provider tax and a 1% across the board income tax rate reduction. Overall, this would amount to approximately $2.7 billion in tax cuts for the citizens of Minnesota.

Sen. Runbeck said that this newest surplus number strongly supports this plan. "The money is clearly there to support a thorough and sweeping tax cut. The extra $732 million is just more money to add to the pot let's give it all back, every single penny."

Rep. Krinkie went on to say, "It is high time we figured out a way to end this ridiculous cycle of over-collecting taxes, debating how to give it back, arguing about how much to return and, ultimately, only giving a portion back to the taxpayers. If they are done right, tax cuts can put a stop to this merry-go-round once and for all."

The forecast indicates that the state's structural balance for the 2000-2001 biennium is $2.5 billion. Clearly, the state can afford to look at a $2.7 billion tax cut and still remain in structural balance. In addition, the forecast does include a 4.1% spending increase, which is a quite generous estimate considering that House Republicans have indicated a strong

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desire to hold the line on other than normal inflationary increases.

"It's fairly simple, really," said Sen. Runbeck. "Cut taxes to the point where the amount of revenue collected is close to the amount of revenue needed."

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