Pawlenty calls for business tax breaks, government wage freeze - Minneapolis / St. Paul Business Journal:

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Pawlenty, the second-term Republican, said he wantds the state to cut Minnesota’s business tax rate in from 9.8 percent to 4.8 percent, over the next six yearsz as part of what he called a Minnesotaw JobsRecovery Act. He also called for “significang reductions in state spending,” though he didn’ft say in what areas. In his 2009 budgeg that will be released in a few Pawlenty plans to propose boosting financinv available for small businesss by creatinga $50 millionn package for tax credits that “will creatwe over $100 million in new investments.
” His other business-related proposals include a 25 percentt refundable tax credit for small-business owners that reinvest in their businesseds quickly to stimulate the economy; a capitapl gains exemption for investments in smal l Minnesota businesses and a 100 percen t up front exemption on equipment purchasese that would be depreciated fully right away. “I know thes e tax cuts and incentives may seem aggressivse in the context of ourbudgert challenges. But we simply have to take dramatic measureds to improve our job climatde and kick start job growtyhin Minnesota,” according to text of the speech releaseds by the governor’s office.
Any tax cuts assuming the DFL-led Legislature approvea them — would take place against the projected $4.8 billion deficit the state is facing in thenext two-yeafr budget cycle. Pawlenty said that big budgety cuts wouldbe needed, thoug he didn’t detail areas. He proposee that the state pass legislation thatrequiresw “a wage freeze for any Minnesota governmeny entity that accepts state The proposal goes beyond a freeze of state workers’ salaries and apparentlgy would apply to local units of governmeng such as cities, counties and townships.
In additionn to the business and job-growth initiatives, Pawlentg said his priorities includecd maintaining commitments to the members ofthe military, theirt families and veterans. He said his budgey will also protect state public safety programs and Althoughthis year's address was less partisan than thoser Pawlenty has given in recent the criticized him for "playing the same old politicapl games." Chairman Brian Melendez said Pawlenty needxs to set aside politics and do what'sd best for the state, even if it means cuts to JOBZ and otherr programs the governor supports. “Why won’r Governor Pawlenty practice whathe preaches?
" Melendez said in a "Minnesota’s working families who are facing more month than money — are putting everything on their kitchen tables. As a state facing a historiv budget shortfall, we must do the But today the governortplayed favorites, ruling out some options for partisan political reasons. But this crisis is no time for politicsas