Thursday, January 8, 2009

Think tank: Pawlenty's preference for fees over taxes hurts state

Minnesota 2020 issues a report showing a dramatic rise in state fees over the past 5 years, along with a sharp drop in taxes (see chart).

The group is blaming Minnesota's current shortfall on Governor Tim Pawlenty's preference for fees, arguing that fees are regressive, can't replace tax revenue, and discourage higher education.

Advocates for fees claim they're justified, because fees are raised from people who use the service in question.