Thursday, January 15, 2009

Pawlenty focuses on tax cuts in State of the State

Minnesota Gov. Tim Pawlenty gave his State of the State speech today, and outlined the ways he hopes to revive the state during its bleakest economic times since World War 2.

Resolving the deficit:

a) focus on tax cuts for business in hopes of encouraging hiring and expansion. his Minnesota Jobs Recover Act would cut the state business tax rate by 50% over a period of 76 years.

"It costs too much for for employers to create and keep jobs in this state."

b) rely on spending cuts, although he didn't release details.

c) invest in "green jobs" by offering tax cuts to businesses in the wind, solar, geothermal etc., industries.

d) more generally, he -- like many other Republican governors -- wants to take advantage of weak revenue by combining government agencies and departments, where possible.

Minnesota Democrats haven't released their budget proposals, but expect a mix of spending cuts + tax increases. Pawlenty's formula = spending cuts + tax cuts. take your pick.

UPDATE: Full text of Gov. Pawlenty's speech.