September 15, 2008

ITEP’s Public Comments to the Governor’s 21st Century Tax Reform Commission


We appreciate the opportunity to submit comments on ways to improve Minnesota’s business climate. Historically, Minnesota has ranked above the national average in terms of many economic and social indicators. These public services are what foster economic development and what businesses look for when making location decisions. In fact, “research shows an emerging consensus that public investment in infrastructure either stimulates or supports economic growth and activity.”

The tax system used to fund these vital services deserves careful scrutiny. First and foremost a tax system must raise enough money to support and sustain the level of services demanded by citizens and policy makers. ITEP urges the Commission to adopt reforms that make the tax structure more sustainable instead of approving tax breaks or special incentives which erode Minnesota’s ability to generate revenues. Policymakers must look past hollow arguments describing how taxes impact economic development and instead look to other more economically sound ways to spur economic development through investment.

Read the Full Report (PDF)