About Growth & Justice

  • Growth & Justice is a progressive think tank committed to making Minnesota's economy simultaneously more prosperous and fair. We believe that at a time of deep partisan division, Minnesotans can unite around one goal: a strong and growing state economy that provides a decent standard of living for all.

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January 16, 2009


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If you reduce business taxes you increase employment, wages, consumer spending, retail and wholesale prices and benefits...pretty sound economic policy. Where we "rank" has little to no bearing--reducing taxes on business means more money in all of our pockets.


How does reducing taxes increase employment? Where is the connection? Doesn't demand for product increase employment? Lower business taxes equals more shareholder profit, not more money in our pockets. What you call sound economic policy, I call simple and wrong.


Pawlenty will be on MPR on 1-26-2009 during the mid day segment. Could Matt please call in and point out these other measures to the Gov? In particular the state web page promoting the good business climate in MN which disputes his current version (for home consumption) that business climate sucks. Pawlenty has selectively chosen an anti-tax group (as usual) to hawk this agenda. I will be tied up and can't call in, and he would do a better job.


Here is how reduced taxes increases employment: 1) reduced taxes makes Minnesota more attractive for start-ups and existing businesses to incorporate and set up shop in MN, 2) lower taxes increases business profits and the profits are then distributed or reinvested: either way, the funds are in private hands and used more efficiently than the dead weight loss created when a tax is levied; 3) lower taxes results in more capital being available for profit producing activity (bank loans, venture capital, etc). It is no secret that MN is on a death spiral of high taxes and low growth. MN sucks for business not only because of the high taxes but because there is too much state government. Government exists in MN often for the sole purpose of making it needlessly more difficult for business owners. Just ask anyone who has dealt with the dept of commerce. I have a client that has to deal with the DOC because the doc believes he may have to be licensed. They don't know for sure but nonetheless have issued supoenas for records so they may determine if they should be licensed. MN needs to cut state government by 50% eliminate all income taxes and maybe this state will be competitive. Otherwise, MN=California.

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