A loophole, or sound tax policy?by Cathy Wurzer, Minnesota Public Radio
Democrats and Republicans in the Minnesota Senate continue to joust over tax policy. The Senate passed a budget earlier this week that raises $60 million by closing so-called corporate tax loopholes. Many Republicans and business leaders object to the plan, and even to the term "tax loophole." One of the changes included in the Senate bill would make it harder for companies to call themselves "Foreign Operating Corporations." DFLers say companies can use that designation to shelter income from state taxes. Business leaders say it encourages companies to sell more of their products and services in foreign markets, which creates jobs here in Minnesota. Morning Edition host Cathy Wurzer talked with DFL State Senator Larry Pogemiller, who authored the legislation, and Dan Salomone, revenue commissioner for the Pawlenty administration.