Terri Bonoff

Eric Wieffering writes of the scholarly work done by PhD candidate Marvin Taylor. (Star Tribune June 1 - http://bit.ly/kzfcYU). Taylor wrote of the important roles played by James Ford Bell and Governor Orville Freeman in shaping the conversation around tax policy and strategic investment that took place in the 1950s and that continues today.

I appreciated the Wieffering/Taylor historical look-back, but I think it misses some important parallels worth noting. In 1955, Freeman called for the formation of a special committee to study how business, labor and the University could partner to build a more productive business climate. We actually did the same thing just two years ago. The 21^th Century Tax Commission was established to explore how we can strengthen our business climate here in Minnesota. Unfortunately most of the recommendations were placed on a shelf. There was a lack of political will to enact the recommendations, even though the task force members represented many of the best and brightest thinkers in our State.

I found it interesting to learn that Ford Bell’s revenue solution back in the fifties was to enact the statewide sales tax. In addition, the leaders of that time advocated and supported “angel investments” as a strong economic tool. Last session, we enacted an angel investment tax credit to stimulate new business growth. This session we passed legislation, not yet approved but supported by the Governor, to fund the Science and Technology Authority, again attempting to stimulate an important growth sector in our economy.

Putting Minnesota on the road to prosperity means we must use the best thinking of all our leaders, both past and present. As Freeman’s special committee concluded, continued investment in education is a critical component of a diversified economy in Minnesota. The 21st Century Tax Commission Report highlighted the sales tax as a tool to raise additional revenue and bring some much needed stability to our currently volatile revenue stream. While we do have a current sales tax, we have not addressed the many goods and services sold in Minnesota that are exempt from our sales tax. As we work to find common ground on a projected $5 billion deficit, an expansion of the base of the sales tax is something that should be considered. To envision a future Minnesota where we again lead the nation in both economic growth and educational achievement will take all of the tools in our toolbox. Revenue opportunities lie in both the sales and income tax areas. The Freeman report concluded that there was no evidence linking an increase in taxes to suppressed economic growth. While we all understand the importance of being competitive in this increasingly global economy - taxes do matter - we also understand the importance of emerging strong, streamlined and innovative, rather than fractured and broken from this fiscal crisis. Raising revenue to continue funding the status quo should be and is being rejected by all policymakers. New revenue must be used to fuel the critical reforms necessary to modernize the way we deliver government services and educate our youngest learners, beginning with pre-school, through post-secondary. Our Minnesota Elders have laid a strong foundation for the leaders of today. We must use our political, intellectual and compassionate will to forge consensus now so that our vision for a reinvented Minnesota can unfold.