Emmer unveils $626M jobs plan - no way to pay for it
09/08/2010
Tax cuts in Republican's budget-balancing proposal would add to state deficit.
By BAIRD HELGESON, Star Tribune
Last update: September 7, 2010 - 6:26 AM
Standing in a small factory in Burnsville on Monday, Republican gubernatorial candidate Tom Emmer unveiled a plan he said would revitalize Minnesota's economy through business tax cuts and incentives to aid new businesses.
Emmer's two rivals have already released complete budget-balancing plans -- and repeatedly criticized Emmer's lack of detailed plan. He responded with the Labor Day news conference to showcase his job-creation package, the first of a three-part rollout of his budget-balancing proposal. Voters won't see what are likely to be the most controversial aspects of his plan for a couple of weeks.
Emmer's proposal did not address the state's $6 billion deficit. Instead, the steps he described would add another $626 million. He also offered no guarantees about the number of jobs his plan would create.
"The biggest problem we face is not that government has a budget deficit, but that Minnesota has a jobs deficit," Emmer said at Permac Industries, which makes parts for medical device manufacturers and other industries.
His proposal includes:
• Cutting the corporate franchise tax rate from 9.8 percent to 7.8 percent by 2012 and then to 3 percent by 2015. Emmer's goal is to eventually repeal the tax. The proposal would save businesses $368 million in 2012-13.
• Allowing certain businesses to subtract 10 percent of their income for state tax purposes, saving them $158 million through 2013. Emmer wants to increase the subtraction to 20 percent in later years.
• Reduce the state property tax by $100 million.
• Expand research and development tax credits and the "angel investor" tax credits, targeting start-up technology companies.
"I am not here to say I can save or create some number of jobs," Emmer said. "Governors and governments don't do that, despite what some might say. What we can do is create a business climate that will lead to job creation."