Minn. Senate panel approves business tax cut deal

A Minnesota Senate panel has approved a $200 million package of tax breaks for businesses, as part of a larger job-creation proposal.

The Republican-backed bill would reduce the corporate income tax rate by half over six years. It would also roll back business property taxes to 2009 levels.

Sen. David Tomassoni, DFL-Chisholm, doesn't like the approach. Tomassoni said the tax break would benefit too many corporations based in other states.

"If you're going to give them this money, I think you should make sure that they produce jobs in Minnesota," Tomassoni said. "I think just saying we're going to give you a tax break doesn't give us any guarantee whatsoever that we're going to have jobs in Minnesota."

Republicans say the bill sends a powerful message that Minnesota wants to attract businesses.

"It's just as important for us to make some symbolic steps immediately, as we are on hopefully the beginning of an economic recovery," said Sen. Geoff Michel, R-Edina. "We want to plant that flag at our borders that Minnesota is open for business."

The bill also duplicates the permit streamlining and regulatory reform contained in a separate bill that has already passed by the House and Senate.