“The new GOP business tax cut will increase Minnesota’s deficit, but wouldn’t help increase jobs,” said Wayne Cox.
“Minnesota is staring at a very large deficit next biennium. And the legislative leaders, remarkably, say the solution is to reduce revenues. This bill would add $145 million to the projected deficit in FY 2014-15 and $300 million to the projected budget deficit in the FY 2016-2017 biennium.”
The House and Senate were expected to vote Monday on a plan that would freeze statewide business property taxes, create a tax break for investors in new businesses and provide an upfront sales tax exemption for businesses that buy new capital equipment. It also includes Gov. Mark Dayton\'s initiative to provide a tax credit to businesses that hire veterans.
The plan would result in the state losing some $2.3 billion in property tax revenue through 2026, Cox said.
“This business tax cut is not needed. Minnesota ranks low in business taxes as a share of the private economy. The statewide business property tax is already capped so it grows more slowly than other property taxes. Freezing the statewide business property tax means forcing homeowners again to pick up businesses’ load.”
Rather than provide tax breaks to business, lawmakers should invest in initiatives that directly put people back to work, such as public works construction, Cox said.
“The Legislature should follow Governor Dayton’s lead and approve real jobs, not fake ones, and then go home.”
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“The new GOP business tax cut will increase Minnesota’s deficit, but wouldn’t help increase jobs,” said Wayne Cox.
“Minnesota is staring at a very large deficit next biennium. And the legislative leaders, remarkably, say the solution is to reduce revenues. This bill would add $145 million to the projected deficit in FY 2014-15 and $300 million to the projected budget deficit in the FY 2016-2017 biennium.”
The House and Senate were expected to vote Monday on a plan that would freeze statewide business property taxes, create a tax break for investors in new businesses and provide an upfront sales tax exemption for businesses that buy new capital equipment. It also includes Gov. Mark Dayton\’s initiative to provide a tax credit to businesses that hire veterans.
The plan would result in the state losing some $2.3 billion in property tax revenue through 2026, Cox said.
“This business tax cut is not needed. Minnesota ranks low in business taxes as a share of the private economy. The statewide business property tax is already capped so it grows more slowly than other property taxes. Freezing the statewide business property tax means forcing homeowners again to pick up businesses’ load.”
Rather than provide tax breaks to business, lawmakers should invest in initiatives that directly put people back to work, such as public works construction, Cox said.
“The Legislature should follow Governor Dayton’s lead and approve real jobs, not fake ones, and then go home.”