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Emmer releases jobs plan; more of budget agenda to come later

Tom Emmer takes questions during his press conference at Permac Industries.
MinnPost photo by Jay Weiner
Tom Emmer takes questions during his press conference at Permac Industries.

On Labor Day, in a relatively small machine shop in an industrial park in Burnsville, Republican gubernatorial candidate Tom Emmer released his “Jobs-creation agenda.”

Today’s announcement is the first of several Emmer has planned to outline his plan for addressing the state’s budget problems.

Mostly, it seemed, it was a tax-cut agenda for the business community, but Emmer insisted that by cutting the state business taxes and state general property tax, while expanding the state Research and Development Tax Credit and tax credits for investors, jobs would be created.

“By growing jobs, you will drive revenues,” he said, believing that such job growth would generate taxes that would begin to balance the state’s looming $6 billion budget deficit. Emmer estimated the cost of the tax cuts at $626 million but, for now, did not propose a way to pay for them. 

His entire program and release can be found here.

The DFL Party created a kerfuffle before the Emmer announcement, asserting that the site of Emmer’s announcement, Permac Industries, had benefitted from the federal Recovery and Reinvestment Act, or “federal stimulus,” under President Barack Obama. Permac’s president and CEO, Darlene Miller, denied that.

After Emmer’s news conference, the DFL called his plan “smoke and mirrors,” and Independence Party candidate Tom Horner issued a statement claiming Emmer’s tax reforms proposals were previously recommended by the state’s 21st Century Tax Reform Commission (PDF) but rejected by Gov. Tim Pawlenty and the GOP House Caucus, of which Emmer is a member.

We will try to sort this out, with more on Emmer’s plan, and more reaction to it Tuesday morning at MinnPost.

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Comments (6)

  1. Submitted by Paul Brandon on 09/06/2010 - 06:01 pm.

    Read the news release —
    straight from the Chamber of Commerce.
    Good old (and discredited) supply side economics:
    if you give money to businesses somehow they will produce more, even if there’s no demand for their products!
    In fact, businesses produce more only if they can sell something; if they can’t they just pocket the money. This may be good for banks, but not for the rest of us.
    The only way to increase business activity is to put money in the hands of people who will spend it; the lower and middle classes. This increases demand and thus stimulates the economy.

  2. Submitted by Hiram Foster on 09/06/2010 - 06:29 pm.

    Emmer’s both a budget and a jobs proposal only in the sense that it makes both problems worse. On the budget side, Emmer proposes tax breaks for corporations which increases the deficit while making it more profitable for corporations not to create jobs. In addition, Emmer proposes cuts in property taxes, which whatever it’s other merits, will mean job cuts at the local level government level, at a time when the private sector finds it next to impossible to create jobs.

    Emmer’s press conference on a holiday which suggests an intent to minimize scrutiny of what he is proposing raises the question, “how many different ways can a set of proposals from a candidate go wrong at once?”

  3. Submitted by Richard Schulze on 09/07/2010 - 06:58 am.

    Emmer’s plan is similar to recommendations by the 21st Century Tax Reform Commission done under Governor Pawlenty. Pawlenty then and Rep.Emmer now, only want to implement the components which will lower the capital gains tax. They both ignore the part of the study that talks about raising revenue to pay for the plan. The commission proposed broadening the state sales tax to make this plan revenue neutral. Emmer’s plan is another example of GOP tax cuts and deficit spending. If the Republican tax cut theory worked, we should be experiencing 100% employment with a booming economy.

  4. Submitted by Paul Brandon on 09/07/2010 - 09:51 am.

    I’ve got this bridge in Brooklyn, used but in good condition ….

  5. Submitted by Thomas Swift on 09/07/2010 - 10:01 am.

    Richard, you discount Emmer’s contention that government is too big, too intrusive and too expensive.

    Reducing the amount spent by government inherently reduced the deficit. Reduce tomorrow’s spending to less than today’s and you have a surplus to spend on something with a better return on the investment.

    We really can’t judge the Republican tax cut theory, because taxes really haven’t been cut; they’ve just been shuffled around from one pocket to another, and government growth in spending has continued to outpace the economy.

    Emmer promises to put a top to that, and unlike Pawlenty, he promises to match tax cuts with spending cuts. Let’s wait and see how that works.

  6. Submitted by Richard Schulze on 09/07/2010 - 09:20 pm.

    Tom, I have no doubt that it will only get ‘better’….

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