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State Representative Tim Kelly
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8635
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
A DIFFERENCE OF OPINION ON JOB CREATION
The big news on the Minnesota House floor recently was an attempt to pass legislation that would put more people back to work.
The proposal would have gradually phased-out Minnesota’s corporate income tax, worked to attract new businesses and rewarded existing businesses for staying in Minnesota. The thought behind this proposal was that by giving private sector job creators the financial incentive to expand, they will employ more people paying income taxes – which would eliminate state budget problems.
The House majority voted down the motion.
While I don’t like to paint everything as a Republican/Democrat partisan battle, the two sides certainly do have separate ideas on the best ways to create jobs.
Republicans believe phasing out the corporate tax rate by one percent annually and the Alternative Minimum Tax at the same rate would help. This would provide much needed relief to area businesses hit hard by the economic downturn and encourage expansion, providing more jobs for Minnesotans. Again, more people working and spending money means more money in the state’s coffers.
The Democrats are using the bonding bill – which borrows money to fund state construction projects – as the catalyst of their job creation proposal.
I have a few concerns about the Democrat plan. First, we’ve had sizable bonding bills for the past three years, and we still have a $1.2 billion budget deficit. With that track record, I’m not confident a bonding bill alone is going to turn our economy around.
Second, the bonding bill only impacts the construction sector of the economy. And while I certainly support construction workers finding new employment, the bill itself does nothing for the struggling Main Street business person or the factory that’s downsizing.
Third, Minnesota is already $1.2 billion in debt. Borrowing another $1 billion or more doesn’t seem to be fiscally responsible.
Job creation and budget deficit elimination are going to be the priorities of both parties this legislative session. As session moves forward, it’ll be interesting to see how Republican and Democratic lawmakers put their huge differences aside and finally break this stalemate.
News Items
- CONFERENCE COMMITTEES SHAPING IMPORTANT BILLS AT LEGISLATURE - (Posted: 2012-04-05 00:00:00)
- TAX RELIEF AND JOB CREATION BILL APPROVED IN MINNESOTA HOUSE - (Posted: 2012-03-22 00:00:00)
- MORE GOOD NEWS FOUND IN LATEST STATE BUDGET FORECAST - (Posted: 2012-03-06 00:00:00)
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