House GOP takes the offensive on jobs during floor debate

House Republicans this afternoon on the House floor jumped out in front of DFLers who are fast-tracking a nearly $1 billion capital projects bill.

House Republicans, who hold a 47-vote minority to the DFLer’s 87-vote majority, tried to suspend the rules of the House in order to take up a bill that would phase-out the state’s corporate income tax over a period of 10 years. The bill is sponsored by Minority Leader Kurt Zellers, R-Maple Grove.

Rep. Laura Brod, R-New Prague, said lowering businesses’ costs  would help get people back to work faster than the proposed bonding bill that borrows money to pay for construction projects.

“We don’t need to wait for government spending, we can [create jobs] today,” Brod said.

House Majority Leader Tony Sertich, DFL-Chisholm, asked how the GOP would make up for the loss of revenue from the corporate income tax. He said the bill would cost the state’s general fund $2 billion.

“Rep. Zellers and those who spoke [on the floor] are not serious about balancing the state budget. …This is irresponsible” Sertich said.

Sertich likened the bill to President George W. Bush’s tax cuts. He said those cuts led to the ballooning federal budget deficit.

“That’s what this bill would do,” Sertich said.

Zellers said businesses will “reinvest” the money they save from lowered taxes.

The motion failed 81-46.

Three DFLers voted across party lines. They were: Julie Bunn, of Lake Elmo, Mary Ellen Otremba of Long Prairie and Paul Rosenthal of Edina. Bunn and Rosenthal have two of the most distinguished resumes in the Legislature on matters of economics and finance. Bunn holds a Ph.D. in economics from Stanford and Rosenthal is a currency trader.