Wednesday, June 11th 2008

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Yesterday, the voters of the two largest counties in North Dakota sent a clear and loud message to local officials - "No New Taxes." Taxpayers in two major cities also declared that sales taxes they approved for previous projects should not be rolled over into new projects.

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Thursday, May 8th 2008

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The Bottom Line

Oil Tax Windfall Breaks $100 million for 2007-09 Biennium

According to the Office of Management of Budget, $71 million from oil taxes were deposited in the General fund by December 2007, since then, over $100 million has been deposited into the permanent oil trust fund.

If oil prices continue to exceed $100 barrel, the oil trust fund will be on pace to have a balance of nearly $700 million including the $136 million that was left in the trust fund last legislative session.

This is an absolutely huge amount of money that can be saved for future generations with the passage of Constitutional Measure #1 in November's General Election.

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Monday, April 7th 2008

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Prosperous Times
A Chronicle of What's Happening at AFP-North Dakota
March 2008
 
 
 
In This Issue
Upcoming Events
OMB Predicts Huge Growth of Income and Sales Tax Collections
Board of Higher Education Considers Enormous Spending Increase, Tuition Continues To Increase
Governor Prosposes Massive K-12 Spending Increase
Why North Dakota Deserves a Tax Cut
The Bottom Line
Up Comming Events

AFP will have booths at both the Republican and Democratic Party State Conventions.

March 28th - 30th we will be in Fargo at the Republican Convention at the Holiday Inn.

April 4th - 6th we will be in Grand Forks at the Democratic Convention at the Alerus Center.


If you have not yet signed the petition, or would like to help us out at the booth, give us a call at the office (701) 223-9887.

OMB Predicts Huge Growth of Income Tax and Sales Tax Collections

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The Office of Management and Budget's latest newsletter reports that Moody's Economy.com is projecting 4.3% average annual growth in personal income for North Dakota through 2011. The graph above shows what that will mean to revenues solely from the Individual Income Tax.
     
 
 
 
Board of Higher Education Considers Enormous Spending Increase
Tuition Also to Increase Under Plan

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The Budget, Audit, and Finance sub-committee for the North Dakota Board of Higher Education gave the go ahead to a plan to increase state funding by 53% over the next two years, as well as increasing tuition by 4% each of the next two years.

As the above graph shows, the cost of Higher Education for the taxpayers is up over 40% in the last 10 years, while the cost to the student has more than doubled in that time.

 
 
 
Governor Proposes Massive K-12 Education Spending Increase
Shifts Tax Burdens in the Name of Tax Relief













Last month, Governor John Hoeven announced a plan to drastically increase spending on education in North Dakota. The plan calls for a $300 million increase in spending for local education in the state. The governor claims it will reduce the average mill levy for local property taxpayers by 50 mills. However, we believe this plan will not solve the problem: that state and local officials are continuing to spend more money for fewer students and getting the same result.

There has been a lot of talk in recent years that the state has not done its part in funding education in North Dakota. If the actual facts are taken into account, we see on a per pupil basis education funding today is at record levels - even when adjusted for inflation. Since the historical low reached in 1992, state funding of education has increased drastically - over $1,400 per pupil, above and beyond inflation.

Local school boards made the decisions that led to a higher dependence on property taxes to fund education. By letting the state bail out local officials, this plan ties the hands of local officials who are the only people who have the power now to fix the problem. The state has never funded education more in terms of inflation adjusted per pupil dollars than it does today.

Furthermore, are we going to support more double-digit growth in state spending? Spending at the state level is also a major concern. Fiscal commonsense dictates that government should live by the same rules as taxpayers are forced to. The recent spending spree of local and state government is unacceptable.
 
 
 
Why North Dakota Deserves a Tax Cut

If someone told you that by living in North Dakota you would have less money to spend than you would by moving to one of thirty-three other states, what would your reaction be?

According to the non-partisan Tax Foundation and the U.S. Department of Labor, hard working North Dakotans, on average, have fewer dollars left over each payday after taxes than 33 other states. Southern states like Mississippi, Louisiana, and West Virginia where wages are even lower and industrial Midwest states like Indiana where globalization has hit are the types of places you'd have to move to have even less money left over after taxes than North Dakota.

In North Dakota, 61% of households earn less than $35,000 in taxable income according to the North Dakota Tax Department. Less than 3% of North Dakotans have over $150,000 in taxable income. Nationally, over 20% of taxpayers earn in excess of $150,000. The simple fact in North Dakota is that earnings are lower than national averages, and taxes (federal, state, and local) take a bigger percentage of the average earner's income than all but 11 states.

North Dakota's energy and farm sectors are booming. While we know that will not always be the case, it is time that the state passes along its windfall profits from those industries to the average North Dakotan. So long as the state is levying more tax than it needs to pay for the government approved by the legislative process, the people deserve a voice that can be heard.

With the current surge of tax dollars coming from the renewed energy and farm economies now is the time for North Dakota to embrace the idea of letting every North Dakotan keeps more of their check on payday.

In May, the Federal Government will start sending out checks to every taxpayer in the amount of $600 for single filers, and $1,200 for married. This strategy of one-time rebates has been proven over and over to be inefficient and ineffective in stimulating the economy. Conversely, it has been proven time and again that reducing the long term tax rates of all taxpayers is surest way to promote economic growth. This is why Americans for Prosperity of North Dakota has proposed the initiated measure to cut individual state income tax rates by 50% and corporate rates by 15%.

When Former Governor Ed Schafer and Americans for Prosperity of North Dakota proposed the idea of cutting the state income tax by half for individuals, we realized that the economy was heading for a downturn. At the time, the projected impact of the state income tax cut was $327 million, today media reports quote the OMB Director as saying the tax cut will have a $400 million impact. The tax cut would allow $400 million every two years to remain in the hands of North Dakota - that is REAL economic stimulus.

Dustin Gawrylow, State Policy Director - AFP-North Dakota

The Bottom Line
Revenues Continue to Explode

  • Revenues from oil added another $24 million to the permanent oil trust fund in February - so far this bienium, another $75 million has been added to the trust fund. Every penny in oil tax collected here on out will be added to the trust fund.
  • Sales Tax Revenues have brought in $30 million more than expected so far this biennium.
  • Individual Income Tax Revenues are $25 million higher than expected.
  • Corporate Income Tax Revenues are $32 million higher than expected
AFP can confidently project that the state surplus will be no less than $800 million the next time the state legislature meets in 2009.
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