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Oct 11, 2006 7:02 pm US/Central
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Gubernatorial Candidate Proposes Tax Rebate
St. Paul (AP) ―
Independence Party gubernatorial candidate Peter Hutchinson proposed sending half of a possible budget surplus back to taxpayers through rebates and using the rest to pay off road construction debt.
Hutchinson announced his plan Wednesday, a day after a budget report showed stronger-than-expected tax collections. Between February and September, the state collected $524 million more in taxes than officials were predicting would come in.
By law, the governor must come up with a tax rebate proposal if next month's economic forecast projects a surplus above a certain threshold. The Legislature can adopt, modify or reject the governor's plan.
Hutchinson's two major party opponents, Republican Gov. Tim Pawlenty and Democratic Attorney General Mike Hatch, weren't as quick to detail their intentions.
The rebates Hutchinson suggested would be fashioned after checks sent out during Gov. Jesse Ventura's tenure.
For three straight years beginning in 1999, the state sent out checks in late summer. In 2001, the state issued 2.4 million checks totaling $791 million and averaging $330.
"Just as a fiscally responsible family would spend some of any unexpected income on today's needs and some on paying off their mortgage or credit card debt, I believe the state government must balance both the short-term and long-term interests of Minnesotans," Hutchinson said.
Pawlenty said a rebate would compete with additional spending for education and other priorities.
"No one should look at that money and just say all we're just going to do with it is rebates," Pawlenty told WCCO-AM.
Hatch said he wanted to give it more thought but would be guided by a general philosophy.
"Any time you have a give-it-back formula it ought to be related directly to the people who paid it to begin with," Hatch said. "In the past four years we've had people who paid fees, we've had property tax increases and we've had college tuition increases."
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)