Memorandum Report on the GOP Fact Check of ABM’s “Cuts” Ad

The following is a rebuttal of the GOP response to the ABM ad “Cuts.”

MNGOP Ignores the Facts

GOP’s Claim that Emmer/Pawlenty Did Not Vote on Bill to Tax Upper Incomes is Non Sequitor

MNGOP Claim:

In order to discredit our ad on Tom Emmer’s record, the MinnesotaGOP attempted to discredit the point that Emmer opposed the closing of corporateloopholes by saying Emmer did not vote for HF 2323. In doing this, they convenientlyignored the following facts of the Emmer/Pawlenty record:

The Emmer/Pawlenty Plan Created a Huge Deficit

On May 6, 2010, the Star Tribune noted that Pawlenty’s illegal unallotment plan causeda $2.5 billion deficit:In a rare rebuke, the Minnesota Supreme Court ruled Wednesday thatGov. Tim Pawlenty’s solo move last summer to cut $2.7 billion from thestate budget violated the law....Budget officials and legislative leaders expected to work well into thenight on Wednesday to figure out the budget implications.

They estimate the ruling adds somewhere between $900 millionto $2.5 billion to the budget deficit.

[Star Tribune, 5/6/2010]

Emmer Flip-Flopped On FY08-09 Tax Bill With Local Aid Increases, Property Tax Relief

On May 5, 2008, Emmer voted against HF 3149, the 2008 omnibus tax bill, as it passedthe House 80-52. On May 18, 2008, he voted for the bill when it returned fromconference committee and passed the House 129-4. The House bill closed corporatetax loopholes, increased local government aid, and capped property taxes for lowincome seniors. The bill also created a new property tax credit for middle-classhouseholds. While Emmer did eventually voted for final passage of the bill in order tobalance the budget on the last day of session, he previously had opposed the bill in theHouse, which would have brought property tax relief. [Minnesota House of Representatives, HF3149, House Journal11356, 12910]

In fact, Emmer Will Seek to Eliminate Corporate Taxes Altogether

On three separate occasions, Emmer voted to reduce or eliminate corporate taxes.

Emmer Advocated Eliminating Corporate Taxes.

Emmer’s Gubernatorial website states, “Eliminating the corporate income tax willenable business owners to put money that would otherwise be added to the state’scoffers back into their businesses to expand, innovate, and put Minnesota back towork.” [emmerforgovernor.com,Accessed 04/01/10]

Emmer Wanted To Accelerate Corporate Tax Cuts.

In a March 2006 release from his MN House office, Emmer stated, “Last year theLegislature passed a law to phase-in the single-sales factor apportionment forcorporations. This would mean businesses that pay corporate income tax will not bepenalized in the form of higher corporate income taxes for adding jobs and buyingproperty in Minnesota. We originally planned an 8-year conversion to the new taxstructure, but our budget surplus gives us the ability to do it in 5 years and we should

take advantage. It will only “cost” the government $1.6 million to complete thetransition by 2011, but the return will be tremendous.” [Statement from the office of MN Representative Tom Emmer, 03/14/06]

Emmer Wanted To Slash The Corporate Tax Rate.

In February 2010, the Rochester Post Bulletin wrote, “Emmer said he wants to see thecorporate tax rate slashed with the idea of moving toward a consumption-based taxsystem.” [Rochester Post Bulletin, 02/27/10]

GOP Attempt to Refute Education Funding Cut by Talking About Date of Bill Passage

GOP Ignores the Fact that Emmer was One of Only 13 State Reps to Vote Against Passing HF 6 in2007

GOP Clam

: “After April 18, 2007, there were no additional votes taken on this bill thatyear. During the 2008 session, this bill was used as a “vehicle” and a delete-allamendment was added completely changing the bill. The vote they reference on May8, 2007 was actually a vote on May 8, 2008 and it wasn’t a vote on the bill but, rather,a procedural vote on whether the bill should be taken from the table. Emmer votedagainst taking the bill from the table.”

The Truth:

On April 18, 2007, Emmer voted against HF 6, the K-12 funding bill, whichpassed the House with a huge bipartisan majority of 119-13. The state House of Representatives identifies the vote taken that day as passage of the bill. Emmer votedagainst the bill, which increased funding, taking a stance against increasing schoolfunding. The bill appropriated an additional $16 million to schools and granted schoolsan additional one-time increase of $51 per student. On May 12, 2008, Emmer againvoted against the bill when it was up for repassage. The bill was passed again on asimilar 119-14 vote. [Star Tribune, 5/12/2007; Minnesota House of Representatives, HF62007, House Journal3997, 12113]

GOP Misread Youth Job Training Funding asUnrelated to Youth Job Training

GOP Ignore Funding for Youth Job Training Program Clearly Delineated

GOP Claim:

Nowhere in ABM’s backup is there any support for this claim. “Training”is mentioned only once in the legislation, and that is in reference to home ownershipeducation. This bill had nothing to do with job training.

The Truth:

Cuts to youth job training programs are clearly identified as included in HF1976 by the Children’s Defense Fund. On April 29, 2005, Emmer voted for HF 1976, theGOP written health and human services funding bill. The bill narrowly passed theHouse on a 68-66 party-line vote. The House bill included $70 million in cuts to childcare assistance and $10 million in cuts to youth programs. [Minnesota House of Representatives,HF 1976, House Journal3367] The CDF lamented the cuts to child care and child programming as well as the loomingincrease to penalties some MFIP recipients took:HF 1976, the House Omnibus Jobs and Economic Development billauthored by Representative Bob Gunther, included a $70 million cut tochild care assistance and an increase in the “housing penalty” for MFIPrecipients who receive public housing subsidies, reducing their cash