The new surplus - a mirage?

[question everything]

We heard gloating how the we got so much more tax payment that the state has a great surplus.

Not so fast. These payments came late in the year which may mean that many high earners, who will be limited on how much state tax they will be able to deduce for the 2018 tax year, chose to prepay in 2017.

And, this, apparently, is the reason why the commissioner warned Dayton that this may be a timing issue.

Hope that the Republicans will not attempt to run with this in November. And, that the Democrats will be able to point this out.

[Wellstone ruled]

1. Remember what Ventura did,

never allow that to happen again.

[Eliot Rosewater]

2. What did he do? I dont remember or know.

[Wellstone ruled]

3. Played the refund game.

yes we had a small surplus,and when Jesse convinced the Legislature to cut refund checks,well the next biennium,exonomic downturn and the slash and burn by the Rethugs happened.

The loudest voices are the same ones who screwed up the State of Minnesota before. Look,listen and learn,please.

[Eliot Rosewater]

4. Sounds like what he would do.

Most Americans I think have this belief that government is too big and not effective as it could be or whatever.

That we could always do with a little less government.

The truth is as long as the government is liberal, verging on democratic socialism even, the better it will be and the proof is the Nordic countries.

But brainwashing has prevented us from achieving this.

[question everything]

5. Yes, can do with "less government" until we need it

Talk to all the deplorables in the rural areas, many of them depend on disability payments, food stamps, medical treatment but, hey, this is "different."

One would think that all these bible thumpers will remember the story of Joseph and Pharaoh. Pharaoh had strange dreams and Joseph ciphering was that seven lean years would follow seven years of plenty, thus he suggested to story the excess, the plenty, for the lean years.

And when Ryan said that "this is our money" I "yelled' at him that, no, this is money needed for infrastructure, and, yes, social safety nets.

[Wellstone ruled]

6. We are heading for a Economic Downturn

latter this year. And Bi-Annual Budgets are a bitch for States that have to have balanced Budgets. The unknown is what happens in the Rural Areas,with Trumps personal hatred of Hispanics and now Canadians,the Cash Grain Market is in flux. Hearing the Grain Bins are loaded and no new export contracts on the Horizon.

In the past downturn's, the Rural area Tax Receipt's,which are necessary for Schools and other Municipal requirements,erode and the way the States Constitution has a provision were Cities and Counties share with the State and on Economic Stability of the State. And the Surplus Rainy Day Fund helps balance out short falls in every corner of the State. Called the 1970 DFL Miracle.

[progree]

7. Yup. I paid $3,300 MN estimated income taxes in December, wasn't going to pay anything, not even in

January. Because of safe harbor - I had zero tax liability at all last year (a very unusual year because I gave my farm away to www.PopulationConnection.org so I had a big charitable deduction(limited to 30% of AGI over 6 years), so I didn't have to pay anything in 2017 (except for January). Anyhow, I know I will owe a ton of money to both feds and MN in April.

AFAIK, the $3,300 paid into MN in Dec 2017 will be deductible on the federal 2017 form at 15% federal tax bracket (I think I'll end up there in 2017), whereas if I waited until January or April, it would be deductible in the new 12% federal tax bracket -- for a savings of 15%-12% = 3%, 3% * 3300 = $99. Well, not THAT big of a deal.