Randy Reinke, president and CEO, Custom Products of Litchfield, moderates a Grow Minnesota! panel on how businesses can prepare and maximize their growth as Minnesota emerges from the recession. Andrea Walsh (from left), chair-elect of the Minnesota Chamber Board, President David Olson and Board Chair Dave McMillan attend the Governors’ Summit in Washington, D.C., hosted by the U.S. Chamber of Commerce. The winning foursome from the 2010 golf tournament held in Duluth at Northland Country Club. From left to right: Rebecca Klett, Lockridge Grindal Nauen P.L.L.P., Tom Reinhart, Kwik Trip, Inc., Steve Lasky, Dairy Queen and Nate Mussell, Lockridge Grindal Nauen P.L.L.P. Nearly 60 alumni from Leadership Minnesota toured the Prairie Island nuclear power plant in Red Wing. The program, exclusive to the Minnesota Chamber, provides an inside look at the state's changing economy and the issues that will shape its future. Andrea Walsh (from left), chair-elect of the Minnesota Chamber Board, President David Olson and Board Chair Dave McMillan attended the Governors’ Summit in Washington, D.C., hosted by the U.S. Chamber of Commerce. The event coincided with the release of the report, “Enterprising States,” which highlights successful state strategies for job creation and economic growth. Businesses leaders provide feedback on Minnesota Chamber legislative initiatives during a regional policy session in Bloomington.

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FAQ About Fiscal Policy

Businesses have a lot of money so why shouldn't they pay a lot of taxes?
In fact, businesses do pay a lot of taxes. Like all taxpayers, they pay for government programs and projects that help make Minnesota an appealing place to live and do business. The economic prosperity of our communities and state hinges on the delicate balance between the benefit of those government programs and the cost of the taxes to pay for them. Once the tax burden out-weighs the benefits created by taxes, businesses must look for other ways to absorb the cost of excessive taxes. This can result in higher costs of goods, decreased wages, fewer jobs and reduced operations in our state.

Is the Chamber an anti-tax group?
No. The Minnesota Chamber of Commerce is a business advocacy group. Our goal is to keep Minnesota attractive for businesses to bring good jobs and economic development. One aspect of making Minnesota attractive is reforming the state's tax policy. We recognize the need for taxes and our members expect to pay taxes to fund important government services, but we want to be sure that tax dollars are collected and spent in a responsible way.

If the Chamber is a business advocacy group, why are you concerned about personal income taxes?
Approximately 92% of Minnesota businesses flow their business income through a personal income tax return. High income tax brackets may be aimed at a few wealthy individuals but in practice they can have a devastating impact on our small businesses.

How does Minnesota rank in overall taxes for businesses?
The Tax Foundation ranked Minnesota's 2008 Business Tax Climate at 42nd in the country. (1 = friendliest climate; 50 = least friendly climate) The Index compares the state in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property including residential and commercial property.

What's an alternative to raising taxes to fund public programs?
The Minnesota Chamber advocates a common-sense policy of 'spending smart.' Our principles are:

  1. Set statewide priorities and pay for those first.
  2. Spend only what you have, not what you want.
  3. Pay for what programs and services work - and stop paying for what doesn't.
  4. Work to get the best deal for taxpayers' money.
  5. Create jobs. A strong and growing economy is the best way to raise tax revenue.

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