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Slides for regional policy meetings 5-10

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Slides for regional policy meetings 5-10

  1. 1. THE VOICE OF BUSINESS Regional Policy Meeting The time is NOW!• Introductions• What are your priorities?• Higher Ed and Workforce Needs• Tax Reform: Initial thoughts• Wrap-up
  2. 2. THE VOICE OF BUSINESS Your Policy Priorities• What can we work on to make Minnesota’s business climate more competitive?
  3. 3. THE VOICE OF BUSINESSHigher Education and Workforce• New hires and applicants• Current workforce• Coming trends in your industry
  4. 4. THE VOICE OF BUSINESS Tax Reform• It’s coming.• Governor Dayton’s focus: stability, more revenue.• The Minnesota Chamber’s focus: competitiveness Revenue Commissioner Myron Frans Photo: Howard Lestrud, ECM Publishers
  5. 5. THE VOICE OF BUSINESS Why Reform?• Globalization• Economy• Demographics• Innovation/ Technology• Minnesota Competitiveness
  6. 6. THE VOICE OF BUSINESS Why Reform?“Our recommendations…will transformMN into a global engine of economicgrowth and job creation….The soonerMN moves to gain the global competitiveedge, the more quickly all Minnesotanscan reap the benefits of job growth andeconomic expansion.” Governor’s 21st Century Tax Reform Commission
  7. 7. THE VOICE OF BUSINESS A Starting Point…• Expand the sales tax base to include more consumer-purchased goods and services• Decrease the sales tax rate• Decrease or eliminate some business taxes• End result = revenue neutral
  8. 8. THE VOICE OF BUSINESSTax Reform Scenario - Assumes $2.1Billion in Sales Tax Base Expansion FY 2014Sales tax base expansion at 6.5% $2,100,000 Repeal state property tax ($820,000) 20% exemption for pass through income ~($150,000) Capital equipment up front exemption ($92,000) Exempt technology inputs from sales tax ~($200,000) Reduce corporate income tax rate to 7.0% ($250,000) Sales tax rate cut to 6.0% ($534,000) Low income tax credit ($50,000)Total $4
  9. 9. THE VOICE OF BUSINESS Option #1: Broad Consumer Sales Tax Base Expansion (~$2.1B)Food Fem. Hygiene Prod Tickets to MN Zoo Funeral servicesClothing Caskets & Vaults YM/WCA & JCC Other pers. servicePrescription Drugs Publications Inst. Meals Inv. counselingOTC Drugs Textbooks Fundraising sales Brokerage feesMedical Devices Res. Heating Fuels Artistic events Car repairEyeglasses Res. Water Service School events HH goods repairBaby Products Sewer Service Pers. care services Elec. equip. repair
  10. 10. THE VOICE OF BUSINESS Option #2: Moderate Sales Tax Base Expansion (~$1.4B)Food @ 3% Fem. Hygiene Prod Tickets to MN Zoo Funeral servicesClothing Caskets & Vaults YM/WCA & JCC Other pers. servicePrescription Drugs Publications Inst. Meals Inv. counselingOTC Drugs Textbooks Fundraising sales Brokerage feesMedical Devices Res. Heating Fuels Artistic events Car repairEyeglasses Res. Water Service School events HH goods repairBaby Products Sewer Service Pers. care services Elec. equip. repair
  11. 11. THE VOICE OF BUSINESS What do you think?• Willing to support expansion of the sales tax base to get lower rate, business tax cuts and more stable tax revenues?• Which business taxes to target? – Property tax (state or local) – Income tax (personal or corporate) – Sales tax
  12. 12. THE VOICE OF BUSINESS Thank You! ?• Questions?• Join the Minnesota Chamber and the Small Business Policy Committee! ’s

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