MN 10th lowest in business taxes
Minnesota has the 10th lowest rate of state and local business taxes on new investment, according to a study released Wednesday by Ernst & Young for the Council on State Taxation, a study group of 600 corporations.
"Minnesota has a tax system that is very favorable for businesses," Wayne Cox, executive director of Minnesota Citizens for Tax Justice, said. "The Council on State Taxation also found last year Minnesota is 15th lowest in business taxes as a share of business activity.
"These findings conducted by the nation's largest corporations provide an accurate picture of why Minnesota is a great place for businesses.
But there are danger signs.
Leading studies also show taxes aren't a major factor in business growth decisions.
Adequate transportation, quality education and access to a talented workforce count more. The budget cuts proposed by the Minnesota legislature would weaken these areas.
Businesses have joined with Gov. Mark Dayton in seeking moderation in cuts in these areas. The cuts proposed by the legislature would eliminate 500 faculty from the University of Minnesota.
Several local chambers of commerce have urged Dayton to protect local government aid so their cities can retain jobs and fulfill their economic-growth plans.
Thus far, the legislature has not acted on Gov. Dayton's plan, also backed by some local chambers, for increased employment through rebuilding efforts at universities and other public facilities.
The new COST study can be found at http://www.cost.org/WorkArea/DownloadAsset.aspx?id=78442.