Much of Gov. Pawlenty's budget centers around topics I have no authority to comment on. And so I won't. But as a small business owner, I can say with certainty that I wholeheartedly agree with his proposal to cut the business tax rate from one of the highest in the nation to one that puts the state in a much more competitive position. Cutting the business tax rate from 9.8% to 4.8% over the next six years is a plan that takes a long-view towards the economic health of this state.
Many of you may think that I'm in favor of this plan for personal reasons -- that it would allow me to line my pockets "Blago"-style. Nothing could be farther from the truth. Right now at my small 10 person firm I could really use the extra resources to upgrade some critical technology, purchase additional or upgrade existing software, and most important, I really need to hire a few people. Look at the economic stimulus I could do as one small business. Multiply that by thousands of small businesses, and now you're talking real economic lift. Now granted, that extra 5% that I'm currently giving the state may not fully fund all of those initiatives out of gate but it would help significantly.
Philosophically, the tax cut comes down to one simple question: do we trust business or government to spend money more efficiently and more wisely? It's that simple. I just don't think the 10 people who work with me every day doing fascinating work that actually helps people would rather see me write checks to the state than add a few more smart colleagues to the roster.