Small business is the engine of our economy but they hire only if demand requires more product or services. There are only four sources of demand — consumers, business, exports and government. With the first three nearly comatose, the fourth must act.
The American Society of Engineers estimate there is $2.2 trillion in road, airport, railway and other infrastructure need. The Congressional Budget Office estimates that on a strict cost-benefit basis it would make sense to increase annual spending on transportation by 74 percent. CBO also estimates for every $1 spent on infrastructure $1 to $2.50 is generated in private spending, while only 20 cents to $1 is generated in private spending for every $1 spent on tax reduction for the wealthy.
This is why Tim Walz favors bringing back the Clinton era tax rate for the wealthy and use the $700 billion in revenue to create jobs improving our infrastructure. This is why both Democrats Sharon Ropes and Steve Kemp, running for the state Legislature, support Mark Dayton's proposal to
restore previous years' higher rates for wealthy Minnesotans and use the revenue to create jobs restoring infrastructure. This type of investment does not burden future generations with debt as it saves them from these costs later on.
Robert K. Johnson
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Harmony
