Republican leaders in the Minnesota Senate have unveiled a package of job-creating measures that would provide businesses with regulatory relief and $200 million in tax cuts.
The first bill of the 2011 session would gradually reduce the business income tax rate by half over the next six years. It would roll back business property taxes to 2009 levels and also speed up the process of state government permits for business projects. Sen. Geoff Michel, R-Edina, said the bill gives job creators a reason to choose Minnesota.
“We don’t just compete with Wisconsin and Iowa any more,” Michel said. “We have to compete with Singapore and Malaysia. So, we need to set a basic foundation for Minnesota job creators, and we need to welcome them back to the state.”
Michel said the Senate jobs package will have to travel through several committees, and might not be completed until the end of session.
Senate Minority Leader Tom Bakk, DFL-Cook, criticized the GOP bill. He said Republicans are sending the wrong message on job creation.
“Cutting corporate taxes is a poor tool to spur economic growth,” Bakk said. “Not only is it extremely costly to our state, it provides absolutely no guarantee it will create jobs or help Minnesota’s small businesses and entrepreneurs. All this bill does is shift a greater share of the state’s tax burden onto working families.”