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Minnesota Civic Caucus hears from Mark Haveman

Mark Haveman, a member of the 21st Century Tax Reform Commission discussed tax reform with the Minnesota Civic Caucus on Janaury 29, 2010.  Haveman had an important message to the Minnesota legislature:

Message to the legislature: How a state structures tax rates is more important than issuing tax credits–

“If we don’t do anything,” a member asked, “what will happend to business in the state?”

“We had all sorts of different people on the commission,” Haveman began, “and to a person, they do not believe that legislators appreciate the importance of the tax context. There is almost a smugness (on the part of legislators) that we used to tax high and still grew. But as mobile as capital is today, profits are even more mobile. You can funnel profits anywhere. That’s why rates matter more than credits.

How will you get legislators to listen, a member asked? “Members of the commission are literally walking them (legislators) through the play-out of taxation,” Haveman said. “But it may take more hemorrhaging of companies; more headquarters moving out of state” before the message strikes home.

http://www.civiccaucus.org/Interviews/PDF/Haveman-Mark_01-29-10.pdf