Minnesota Governor Tim Pawlenty released the details of his budget proposal this week.  If enacted, it would cut both health care and education funding by hundreds of millions of dollars, while actually reducing taxes for corporations and other businesses.

Among the tax cuts being pursued by Gov. Pawlenty are a 20% cut in corporate income taxes, a 20% tax exclusion for small businesses, a new investment tax credit, an expansion of the research tax credit, capital gains tax breaks for small business investments, and a slew of other tax incentives.  As the Minnesota Budget Project (MBP) has pointed out, the precise costs of these tax breaks are still unclear, and are likely to grow significantly over time.  The Governor has framed his proposal as a type of job-growth plan, though the massive cuts in state services needed to finance his unbalanced approach will inevitably result in additional layoffs.  

For more detailed analyses of the Governor’s proposal, be sure to follow the good work being done at the MBP’s blog: Minnesota Budget Bites.

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