I’m writing today after reading Senator Nienow’s column on the Republican lead State Senate plan to make business growth a priority. It’s a good goal in this economy to expand our job base, however in the first paragraph of his column Nienow states,” The Senate has a goal for the 2012 session to lower the cost of doing business in the state for job providers.” That’s quite a statement considering Republicans in the Senate and House took away the Homestead Market Value Credit and transfer about $260 million to local property taxes especially to business properties.
It seems to me lowering the cost of doing business in Minnesota doesn’t start by increasing their property taxes. Since former Governor Pawlenty’s no new tax pledge over $1 billion has been transferred to local property taxes. This policy has been embraced by the Republican led Legislature and just continues to increase local property taxes.
His column goes on to say they plan to reduce business income tax by 50 percent over the next six years and drop the corporate Alternative Minimum Tax by $120 million. These are good goals but, how are they going to pay for them? In coming up with a balanced State budget after forcing a State shutdown (longest in our nation’s history), the Republicans borrowed from the tobacco settlement and we’ll all be paying for that for the next 20 years. Not to mention delaying payments to our schools forcing many of them to borrow money until they receive their State aid. The Constitution of our State requires a balance budget, how are the Republicans going to do this? Just keep piling on our property taxes and how’s that going to help business growth?