ST. PAUL — The Majority on the Senate Education Committee rejected a proposal Tuesday that would have paid back the $2.4 billion owed to Minnesota’s kids.
The amendment would have closed tax loopholes and giveaways for corporations sheltering their earnings in places like Granada and Bahrain.
“(This amendment) asks Minnesota companies to play by the same rules that Main Street companies play by now,” said Senator Katie Sieben (DFL- Cottage Grove), who introduced the amendment that would have paid back the entire $2.4 billion IOU to Minnesota kids. “We are paying back our schools the full amount they are owed. It’s not an accounting gimmick and it doesn’t drain our rainy day funds.”
After extensive testimony by the Minnesota Chamber of Commerce and the Minnesota Business Partnership defending the corporate tax havens and tax loopholes currently in law, the Senate Education Committee voted down the amendment 10-5
“We’re the adults in the room now and we owe it to our school children to come up with a plan to pay back the shift,” said Senator Sieben.
The amendment would eliminate tax giveaways and tax loopholes for big corporations sheltering profits in countries like Aruba and Bahrain, requiring them to pay the same rate as corporations with earnings in Minnesota.
“The bill might not be perfect and the language may be offensive to Aruba, but the bottom line is that we can tax corporations making millions of dollars instead of dipping into our reserves,” said Senator Patricia Torres Ray (DFL-Minneapolis). “This is a core issue for our two parties about how are we going to pay for the education of our kids and pay the $ 2.4 billion we took away from kids. We have to pay that. Somebody is going to have to pay.”
The committee did pass Senator Gen Olson’s bill on a party line vote. If passed, the legislation will shift school payment delays from 64/36 to 70/30. The bill now moves to the Senate finance committee.