NEW ULM - Minnesotans have watched their elected leaders wrangle over the past eight years, dividing deeply over philosophies on taxies, and on what government should be doing for its citizens.
With the upcoming gubernatorial election, the philosophical differences could be deeper than ever with Republican Tom Emmer favoring the slashing of government spending, and DFLers like Mark Dayton favoring increasing taxes to overcome a looming $6 billion state budget deficit.
Jim Mulder, running mate for Independence Party hopeful Tom Horner, thinks that may leave lots of room in the middle for candidates willing to consider different solutions.
"We've seen the Legislature and the governor, through ideology, push problems down the road," said Mulder, in New Ulm Monday as part of a campaign swing through southern Minnesota.
The state needs to focus on four main areas, said Mulder.
First, of course, it has to solve its budget problems.
"We need to reform the tax system," said Mulder. "The state's approach to taxes has been like playing jackstraws, pulling out one stick without consideration of what happens to the rest of the pile."
The state has become too dependent on property taxes, said Mulder. It's a trend that has been felt keenly in the outstate area, where cities and counties have been expected to pick up more of the cost for the state.
"We need to have progressive income taxes," said Mulder. It is impossible to solve the state's budget problems through taxes alone, especially taxes on the wealthiest. Raising taxes on the wealthy would push some to move out of state, Mulder said.
Instead of raising the tax rates for the wealthiest, the state could increase its revenue by focusing on deductions they use, he said. One example would be to lower the maximum deduction for home loan interest, he said.
The state may need to adjust the sales tax, extending it to previously exempt products like food and clothing, while simultaneously lowering the sales tax rate.
The state may have to re-examine how it deals with cities and counties. State support to cities may have to focus on providing the most essential services, like public safety and fire protection, clean water and sewer service.
Counties have been mandated to provide more and more services. They need a revenue source to pay for it, perhaps through a county sales tax.
The state needs to put a moratorium on mandates, said Mulder.
In addition to the budget, the state has to revitalize the economy in outstate Minnesota. Tax breaks that encourage capital investment would help, said Mulder. The state should also encourage research and development in alternative energy systems to provide more jobs outstate, said Mulder.
The state also needs to invest in providing broadband Internet service throughout the state.
Mulder also said it is time to redesign the state education formula, which was created in 1970. It was premised on the idea that there would always be a growing student population.
The state also needs to streamline its regulatory system to prevent the kind of delays that are driving business expansion to other states, said Mulder.
As a longtime president of the Association of Minnesota Counties, Mulder said his role in the state capitol would be to be a spokesman for those with innovative ideas.