The Minnesota Chamber advocates tax policies that will keep Minnesota competitive as a place for businesses to create and retain jobs and fulfilling careers for individuals. To do so, government services and programs must be evaluated, restructured and streamlined.

The state’s tax structure is especially important as Minnesota is beginning a period of rapidly changing demographics where the growth in the aging population (those individuals demanding more government services) will significantly outpace growth in the working population (those individuals paying taxes to support the government services). The dynamics necessitate that government seeks greater efficiencies in its operations and focuses on truly statewide priorities.

2010 Legislative Priorities

We will advance spending reform that will focus on three components:

• Change the way the state sets its budgets to avoid overcommitting during times of surplus and to prioritize spending.
  
• Deliver government services at a lower cost per unit while maintaining or improving service.
  
• Reduce the overhead expenses of government, including recommendations on public employee benefits and compensation.

We also will start the discussion on tax reform intended to create a more stable source of tax revenues and to encourage the growth of business in Minnesota.

2009 Legislative Accomplishments

The projected $4.6 billion shortfall in the state’s general fund for FY 2010-2011 was resolved without raising general fund taxes. Several taxes were proposed – and defeated, many of which would have fallen disproportionately on businesses. Proposals included an increase in the statewide property tax, elimination of the foreign royalty deduction and foreign operating corporation provision of the corporate income tax, a new tax on interest income, and a new fourth bracket and across-the-board increases in personal income taxes.

Chair: Scott Brener, SFM
Staff: Tom Hesse, (651) 292-4678, thesse@mnchamber.com

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Frequently Asked Questions about Fiscal Policy
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» For more information on smart spending, visit the Coalition of Minnesota Businesses
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