Republican lawmakers have an idea on how to bring jobs to the state--and it doesn't grow the deficit like the tax breaks Gov. Pawlenty proposed last week. They want any new job creators to get a 5 year exemption from the 9.8% tax rate. This doesn't take revenue away from the state because these jobs aren't here anyway. It is intended to compete with surrounding states that offer lucrative tax incentives to new employers. GOPers say it won't be a "bait and switch" because they'll try to permanently lower the tax rate if it works.
The benefit to the state would be obviously the jobs, but other taxes it bring like sales tax and gas tax associated with the jobs. Rep. Zellers says the governor's staff thought it was a "great idea." It is not intended to replace Pawlenty's JOBZ tax-free program in greater Minnesota.
This is another chance for Republicans to say they have some ideas, when Dems big idea is to "ready" the state for federal stimulus. Even though most of the Republican ideas will go no where in the Democratic controlled legislature, it's a PR battle of ideas.