Governor decries attempt to axe tax breaks

by Tom Weber, Minnesota Public Radio

Gov. Tim Pawlenty is calling a plan to eliminate a number of corporate tax breaks "unwise."

St. Paul, Minn. — State Rep. Ann Lenczewski, DFL-Bloomington, presented a bill in committee Wednesday that would repeal most of the state's corporate tax breaks.

It would also slash funding for JOB-Z, Pawlenty's top economic development initiative.

"The DFL just seems intent on raising a whole basketful of taxes on Minnesota taxpayers and Minnesota businesses," Pawlenty said, in an interview. "And I just think that's the wrong direction to go when the economy is struggling and people are struggling to pay their health care bills, their gasoline bills, their grocery bills."

Lenczewski, who chairs the House Tax Committee, said she came up with the plan after the state forecasted a $935 million budget deficit.

She said cutting subsidies for private companies is easier than cutting money for health care, colleges and the courts.

The governor's plan to fill the budget gap includes spending cuts, as well as tapping into the state's reserves.