Thursday, April 1, 2010

Believe It or Not: Minnesota Passes Pro-Growth Tax Cuts

Americans for Tax Reform applauds bi-partisan vote

WASHINGTON, D.C. — Americans for Tax Reform applauds Minnesota Governor Tim Pawlenty and the Minnesota Legislature for enacting a package of pro-job growth tax cuts. The legislature passed the bill (HF 2695) on Monday and Governor Pawlenty signed it into law today in a ceremony at the Minnesota State Capitol.

In a Democratic-Farmer-Labor (DFL) controlled legislature, these tax cuts passed with strong bipartisan support -- 112-20 in the House and 58-3 in the Senate. The overwhelming support for these tax credits proves that even the bluest of states can embrace pro-taxpayer economic policies during the current economic downturn. Many of the provisions were proposed by Governor Pawlenty during his State of the State Address in February. During final negotiations on the bill this week, Governor Pawlenty insisted that the package had to be a net tax cut in order to gain his signature.

“The Minnesota Legislature came to an overwhelming bipartisan consensus this week,” said Grover Norquist, President of Americans for Tax Reform, “that the road to economic recovery is paved with tax reform. I applaud the Minnesota legislature and Gov. Pawlenty for providing incentives that will create jobs and put Minnesotans back to work.”

With an overwhelming majority, the Minnesota House and Senate voted for the bill, which includes a Small Business Investment Refundable Tax Credit (commonly known as an “angel investment tax credit”), an enhanced research & development tax credit, the Historic Structure Rehabilitation Tax Credit/Grant, and tax incentives to renovate a Ford plant in St. Paul. These tax reductions, credits and incentives add up to approximately $31 million in the current budget period and approximately $67 million in the next two-year budget.

“Minnesotans have been waiting for their government to do find real solutions to their economic woes. Now this traditionally liberal state is embracing real pro-growth policies to pull itself out of a recession,” added Norquist. “The next step is to embrace some of Gov. Pawlenty’s other reform proposals: a limit on the growth of state spending and a reduction in the corporate income tax. Parlaying this week’s momentum into serious tax reform will position Minnesota to lead the way in showing other states how to spur economic development through tax cuts and restraining government.”

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