This Billionaire Governor Taxed the Rich and Raised the Minimum Wage. Now, His State's Economy is One of the Best in the Country
When he took office in January of 2011, Minnesota governor Mark Dayton inherited a$6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota's first true fiscally-conservative governor in modern history. Pawlenty prided himself on never raising state taxes -- the most he ever did to generate new revenue was increase the tax on cigarettes by 75 cents a pack. Between 2003 and late 2010, when Pawlenty was at the head of Minnesota's state government,he managed to add only 6,200 more jobs.
During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly -- a tax increase of $2.1 billion. He's also agreed to raise Minnesota's minimum wage to $9.50 an hour by 2018, and passed a state lawguaranteeing equal pay for women. Republicans like state representative Mark Uglemwarned against Gov. Dayton's tax increases, saying, "The job creators, the big corporations, the small corporations, they will leave. It's all dollars and sense to them." The conservative friend or family member you shared this article with would probably say the same if their governor tried something like this. But like Uglem, they would be proven wrong.