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State Representative Bob Dettmer
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4124
For more information contact: Austin Bleess 651-296-5529
NEWS COLUMN
JOBS, JOBS, JOBS
By Bob Dettmer
State Representative
District 52A
One thing our legislative session has focused on this year is job creation. It seems we heard the label “Jobs Bill” being put on everything from the transportation bill to the bonding bill even on a gambling bill. I find it interesting that when the label jobs bill is being tossed around so often that there are not more attempts to keep the jobs of Northwest Airlines and Delta in Minnesota.
With several thousand jobs hanging in the balance we need to work to keep these jobs in Minnesota. Our state and our economy needs these jobs in Minnesota. With our state economist predicting this current period of economic uncertainty continuing through 2008, and into the first part of 2009, we should be concerned. How will the loss of these jobs hurt our economy even more? It is a risk that can be prevented.
The main reason being cited for the merged entity of Northwest and Delta to move to Georgia is the higher taxes. It is true that Minnesota has considerably higher taxes than Georgia. The state and local tax burden in Georgia is 10.3%, while Minnesota is at 11.5%. The business tax climate of Georgia is 20th in the nation, and Minnesota ranks 42nd. Minnesota has a corporate income tax rate of 9.8%, which is third highest in the nation, while Georgia has a corporate tax rate of 6%, which is 36th highest in the nation.
The math on this problem is clear. Minnesota needs to provide tax incentives to keep these jobs in our state. By providing these tax incentives we may also see further commitment to our state from other companies.
House Republicans have offered a plan that is aimed at having the merged entity of the new airlines headquartered in Minnesota. This will help keep jobs in Minnesota and bring more jobs to our state. This could also mean better benefits for our state when it comes to things like flight option, and other perks.
Our state has seen the departure of many good paying jobs over the years. Honeywell, Schwann's, and Marvin Windows are just a few of the companies that have left Minnesota and sought refuge in neighboring states with lower tax rates. There have been many rumors that 3M may relocate jobs out of Minnesota because of its unfriendly business climate.
Our state should be encouraging businesses to locate in Minnesota. We have a great work force and a wonderful educational system. These are things businesses look for. I hope my colleagues on both sides of the aisle can come together on this issue to do what is best for our state.
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News Items
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- April 5 Legislative Update - (Posted: 2012-04-05 00:00:00)
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