Minnesotans Aim At Taxes, Worker's Comp

Organizers in Minnesota, the 28th state to hold a statewide small business conference, drew together more than 500 small business owners/managers last November to wrestle with hundreds of recommendations for legislative and executive action.

While corporate income taxes, unemployment taxes, and worker's compensation were the primary targets, several "sleeper issues" also surfaced for Minnesota small business development. They included resolutions to establish a right-to-work law, to modify state set-asides, and to expand tourism funding.

The meeting's "focus on the needs of small business as defined by small business is a precedent in Minnesota," said Eugene R. Wright, owner of Northside Automatics of Minneapolis and chairman of a nine-member commission on small business that spearheaded the conference.

In two spirited rounds of voting, the 402 delegates elected in earlier regional forums reduced their 468 recommendations to 10 major proposals for presentation to the state's legislature and governor. They include, in order of priority:

1. Reform the worker's compensation system by clearly defining "workplace" injuries, eliminating lump sum awards in favor of weekly or monthly payments, and reinstating statutes of limitations on claims.

2. Reduce the unemployment fund deficit to bring Minnesota unemployment compensation standards into strict conformance with federal law.

3. Reduce corporate and personal income tax rates over a five-year period and accelerate depreciation schedules.

4. Reform the product liability system by defining and reducing liability for altered or misused products and by establishing limits of liability and statutes of limitations for filing claims.

5. Modify securities laws to encourage development of small business participating debentures.

6. Eliminate estate tax to the extent that it exceeds credit for state taxes on the federal estate tax return.

7. Establish a right-to-work law.

8. Tie all state spending to a specific revenue source by combining existing state appropriation and tax committees similar to the federal government.

9. Modify set-aside programs to cover all state purchases and to prevent exclusion of small or minority businesses.

10. Increase tourism funding.

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