Entrepreneurship & organisations: influences and organizations
Slides for regional policy meetings 5-10
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. THE VOICE OF BUSINESS
Your Policy Priorities
• What can we work
on to make
Minnesota’s
business climate
more competitive?
3. THE VOICE OF BUSINESS
Higher Education and Workforce
• New hires and
applicants
• Current
workforce
• Coming trends in
your industry
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. THE VOICE OF BUSINESS
Why Reform?
• Globalization
• Economy
• Demographics
• Innovation/
Technology
• Minnesota
Competitiveness
6. THE VOICE OF BUSINESS
Why Reform?
“Our recommendations…will transform
MN into a global engine of economic
growth and job creation….The sooner
MN moves to gain the global competitive
edge, the more quickly all Minnesotans
can reap the benefits of job growth and
economic expansion.”
Governor’s 21st Century Tax Reform Commission
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. THE VOICE OF BUSINESS
Tax Reform Scenario - Assumes $2.1
Billion in Sales Tax Base Expansion
FY 2014
Sales 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. THE VOICE OF BUSINESS
Option #1: Broad Consumer
Sales Tax Base Expansion (~$2.1B)
Food Fem. Hygiene Prod Tickets to MN Zoo Funeral services
Clothing Caskets & Vaults YM/WCA & JCC Other pers. service
Prescription Drugs Publications Inst. Meals Inv. counseling
OTC Drugs Textbooks Fundraising sales Brokerage fees
Medical Devices Res. Heating Fuels Artistic events Car repair
Eyeglasses Res. Water Service School events HH goods repair
Baby Products Sewer Service Pers. care services Elec. equip. repair
10. THE VOICE OF BUSINESS
Option #2: Moderate
Sales Tax Base Expansion (~$1.4B)
Food @ 3% Fem. Hygiene Prod Tickets to MN Zoo Funeral services
Clothing Caskets & Vaults YM/WCA & JCC Other pers. service
Prescription Drugs Publications Inst. Meals Inv. counseling
OTC Drugs Textbooks Fundraising sales Brokerage fees
Medical Devices Res. Heating Fuels Artistic events Car repair
Eyeglasses Res. Water Service School events HH goods repair
Baby Products Sewer Service Pers. care services Elec. equip. repair
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. THE VOICE OF BUSINESS
Thank You!
?
• Questions?
• Join the Minnesota
Chamber and the
Small Business
Policy Committee!
’s
Editor's Notes
Handouts available: 2012 session Scorecard.
according to 2010 tax revenues, 40 percent of dollars came from the property tax, 33 percent from the income tax and 27 percent from the sales tax.
The Chamber has spent 2+ years looking into the issue of tax reform. We want to show you what we think a good starting point looks like, and see what you think of it.
This shows what we could lower if we expand the sales tax base at a rate of 6.5%. All numbers in thousands so net total = $4,000. Revenue Neutral.
As of 2010 this expansion is estimated to bring in $2.1 billion in FY2014, the amount necessary to do everything described in the previous slide.
This option would bring in about $1.4 billion in FY2014. It could be more politically palatable; it also shows that the big ticket items are food and clothing.