politics

Standing in a small factory in Burnsville on Monday, Republican gubernatorial candidate Tom Emmer unveiled a plan he said would revitalize Minnesota's economy through business tax cuts and incentives to aid new businesses.

Emmer's two rivals have already released complete budget-balancing plans -- and repeatedly criticized Emmer's lack of detailed plan. He responded with the Labor Day news conference to showcase his job-creation package, the first of a three-part rollout of his budget-balancing proposal. Voters won't see what are likely to be the most controversial aspects of his plan for a couple of weeks.

Emmer's proposal did not address the state's $6 billion deficit. Instead, the steps he described would add another $626 million. He also offered no guarantees about the number of jobs his plan would create.

"The biggest problem we face is not that government has a budget deficit, but that Minnesota has a jobs deficit," Emmer said at Permac Industries, which makes parts for medical device manufacturers and other industries.

His proposal includes:

• Cutting the corporate franchise tax rate from 9.8 percent to 7.8 percent by 2012 and then to 3 percent by 2015. Emmer's goal is to eventually repeal the tax. The proposal would save businesses $368 million in 2012-13.

• Allowing certain businesses to subtract 10 percent of their income for state tax purposes, saving them $158 million through 2013. Emmer wants to increase the subtraction to 20 percent in later years.

• Reduce the state property tax by $100 million.

• Expand research and development tax credits and the "angel investor" tax credits, targeting start-up technology companies.

"I am not here to say I can save or create some number of jobs," Emmer said. "Governors and governments don't do that, despite what some might say. What we can do is create a business climate that will lead to job creation."

Rivals again criticized Emmer for refusing to release details on how he would cut $6 billion without raising taxes.

"It is good to see that Rep. Emmer finally acknowledges the need for business tax reform," said Matt Lewis, spokesman for Independence Party candidate Tom Horner. "The difference is that Tom Horner has the political honesty and the plan that tells Minnesotans how we will pay for that tax reform."

Lewis and other critics noted that Emmer's plan largely mirrors recommendations by the 21st Century Tax Reform Commission. For a candidate pledging reform and a bold new direction, he's presenting many ideas that Gov. Tim Pawlenty has pushed for the past eight years, they say.

Emmer said many of the ideas proposed have had bipartisan support, but "I am not going off Gov. Pawlenty's playbook."

DFL candidate Mark Dayton said Emmer doesn't appear to "be willing to come up with one dollar of serious deficit reduction" and hasn't shown any "interest either in education or state government."

Dayton said Emmer is running to be the state's CEO but hasn't come up with a plan for the deficit that would pass muster with any corporate board.

Emmer rebuffed journalists when pressed for more details.

"We'll keep doing it a little piece of a time," said Emmer, flanked by Republican lawmakers and Permac employees. "You guys are so impatient. If you want, I'll give you a hug before we go. But it's coming."

Permac CEO Darlene M. Miller offered her firm support of Emmer's proposal, though she said even if the tax cuts were enacted immediately, it probably wouldn't spark any immediate hiring at her company. Miller has traveled to Ireland, China and other countries as part of Pawlenty's trade missions.

Democrats were quick to claim that Permac benefited from President Obama's stimulus program, spending that Emmer has criticized.

A Sept. 2 news release by the Center on Budget and Policy Priorities said Permac hired Royal Bissonette for "a subsidized" position. In the release, Miller said: "The subsidized jobs program has provided us with a wonderful way to identify dedicated and dependable workers like Royal." The release said Permac has hired five employees through the jobs program.

Miller said after the news conference that her business never got direct stimulus money.

She said Bissonette came to her business through a Dakota County jobs program paid for in part with stimulus money. Once he completed a 10-week trial period at the company, Permac hired him permanently.

Miller said five other workers completed the test run, but were never hired. "These people benefited from the program," Miller said, but her company has not.

Staff writer Rachel E. Stassen-Berger contributed to this report. Baird Helgeson • 651-222-1288