House Republicans Tuesday batted down a DFL proposal to use corporate taxes to repay Minnesota schools.
Democrats say they could repay the $2.4 billion the state still owes from last year's school shift by closing tax loopholes offered to foreign that do business in Minnesota. The DFL offered its proposal on the House floor Tuesday, but the majority, voted to set the minority's suggestion aside and send their education bill to the House Ways and Means Committee without it.
"It is a simple choice," said House Minority Leader Paul Thissen, DFL-Minneapolis, said in a press release. "We can be serious about paying back our kids -- and to fully pay them back -- or we can continue to protect tax breaks for corporations that park their profits overseas."
GOP leadership was equally unreceptive to Gov. Mark Dayton's suggestion Monday that closing corporate tax loopholes on foreign-owned corporations would free up $60 million for a budget supplement that could be used to restore slashed public health programs and fund tax credits for employers who hire out-of-work veterans and students.
Republican Senate Majority Leader David Senjem, R-Rochester, said those so-called loopholes help large corporations stay competitive, and stay in Minnesota. On Monday, he said it was "embarrassing" to hear talk of tax increases while the state is running a budget surplus.
