House Tax Committee Chairwoman Ann Lenczewski, DFL-Bloomington, kills a number of corporate tax breaks in her tax bill released Wednesday (March 19), but counterbalances the package with corporate tax cuts.

"I think it's good policy - I really do," said Lenczewski, saying her bill cuts about $170 million.

House Tax Committee Chairwoman Ann Lenczewski, DFL-Bloomington, goes eyeball to eyeball with House Ways and Means Committee Chairman Loren Solberg, DFL-Grand Rapids. (Photo by T.W. Budig, ECM Capitol Reporter)

by T.W. Budig
ECM Capitol reporter

House Tax Committee Chairwoman Ann Lenczewski, DFL-Bloomington, kills a number of corporate tax breaks in her tax bill released Wednesday (March 19), but counterbalances the package with corporate tax cuts.

"I think it's good policy - I really do," said Lenczewski, saying her bill cuts about $170 million.

"It could be a lot more palatable as people think about it," she said of the blending of slashes and savings.

One of the more visible corporate tax breaks Lenczewski seeks to eliminate is Gov. Tim Pawlenty's signature Greater Minnesota business development initiative, Job Opportunity Building Zones (JOBZ).

REP. ANN LENCZEWSKI, House Tax Committee chair

"It's a bad tax policy that's not working," said Lenczewski during the tax committee hearing on Wednesday.

She is not unmindful of the political aura that surrounds the JOBZ program, Lenczewski explained.

Concerned about JOBZ

Republican tax committee members expressed concerns over eliminating JOBZ.

Rep. Dean Simpson, R-Perham, argued that a broad look needs to be taken in evaluating JOBZ.

For instance, what's its impact on schools, local business, the social makeup of Greater Minnesota towns. "Those are all unmeasurable," he opined.

Lenczewski's bill includes a provision to mitigate the to qualified businesses impacted by the elimination of JOBZ.

Other tax exemptions proposed for elimination by Lenczewski includes one for the Metropolitan Airport Commission property at the Minneapolis/St. Paul International Airport and also closes perceived loopholes for corporations with offshore assets.

Still, Lenczewski also seeks to reduce the corporate franchise tax rate by one percent.

"There's a lot more winners than losers," said Lenczewski about the impact of her tax bill on the business community.

Lenczewski expects the governor to disagree with aspects of the bill. "I don't want to throw something at the governor and say,