Taxes: More Money Wasted, as Tax Money Goes to Multimillionaires.
A certain edifice complex can have an extraordinary power that causes people of left and right to abandon principles.

Conservatives, who often cast a suspicious eye on tax increases, can say "Oh yeah, a few pennies here and there for more taxes is fine."

Social democrats who normally call for "the lucky" to pay even more in taxes, can in turn endorse handing out money to multimillionaires.

What has this power? Professional sports. The desire for some vicarious glory through sports drives too many people to a "eh, why not?" attitude. Money for millionaires? Sure. We'll enjoy it.

The latest victims investors: Hennepin County, Minnesota, which includes Minneapolis, and the Mall of America.

County commissioners hope to increase the sales tax to benefit one privately owned business: the Minnesota Twins, who are owned by a multi-millionaire who employs, if not a dugout of multi-millionaires, guys who will earn more in a season than many people will learn in a lifetime. The goal: a new baseball stadium, priced at nearly half a billion dollars.

Commissioners first must get the approval of the governor, and the legislature. The "no new taxes" governor has said that tapping taxpayers is "reasonable."

As for the legislature, "no new taxes" is also the campaign cry of many in the House. But even some of that caucus may be willing to let Hennepin commissioners tax their own residents. After all, the state and the legislature off the hook--at least until the team goes crying for a roof (this is what one radio host calls Minne-so-cold, after all), which should cost at least $100 million.

Says the news account in the Minneapolis Star-Tribune, "the tax is projected to raise $28 million a year and retire $353 million in county debt."

You read that right. The county is going to float public debt to benefit a single privately owned company. A company with a multimillionaire owner, and quite wealthy employees.

But not to worry, for the Carl Pohlad, team owner, will "$40 million up front and $85 million more before the ballpark would open in 2009."

Actually, Pohland may not pay that much at all; he's 89 after all, meaning that his heirs--if the team is still in the family's hands by 2009--will have to pay the money.

Wonder how many advocates of the death tax support enhancing one family's wealth with taxpayer dollars.

FUNNY MATH
There's one likely scenario, however, in which even that family share won't amount to anything. Why? Having a brand-new stadium around will raise the value of the team so much that the Pohlad family will come out smelling like roses.

The Star-Tribune's Doug Grow draws out some back-of-the-envelope calculations.

Here's what makes the deal so sweet for the Pohlads: "The day the Twins would move into this new stadium, the Pohlad family likely would get back his investment -- and more."

The value of the Twins, now estimated at $127 million by Forbes, could rise by at least $111 million, covering almost all of the $125 million contribution expected from the private owner.

Throw in naming rights. Grow points out that companies now pay anywhere from $2.1 to $6 million for the right to affix their name to a stadium ("Duct Tape Park," anyone?). Accordingly, says Grow, "the Pohlads, conservatively, would receive $130 million for this $125 million investment."

Get the taxpayers to pay for most of costs of building your new factory, chip in yourself, and get that amount back over time. In short, 100 percent taxpayer financing.

Can I get that kind of deal on my house? I'll let small groups of people play bocce on the front yard--but only if I can keep the ticket sales and sell $5 beer out of the station wagon. (permalink)