ND Democrats Criticize Corporate Tax Cuts - KXNet - Bismarck/Minot/Williston/Dickinson

ND Democrats Criticize Corporate Tax Cuts

A long time philosophical difference between Democrats and Republicans heats up at the legislature today.

At the center of the debate: tax breaks for corporations.

Donnell Preskey has the story.

North Dakota lawmakers will decide how to best share the state's revenue with taxpayers.

Proposals call for tax reductions in property, income and corporate taxes.

But there is a great disparity between Democrats and Republicans in how that relief goes out.

"When it comes to tax cuts, North Dakotan's should be first," says Democratic Senator Mac Schneider of Grand Forks.

Democrats say the relief, all $1 billion of it, should go to North Dakotan's through property tax relief.

Their wish is to bypass income and corporate tax breaks this session.

Democrat Senator Jim Dotzenrod says, "we are concerned that the proposals to cut income and corporate taxes go too far and could threaten our ability to fund property tax relief in the future."

The democrats criticize a recent change to a bill, doubling the amount of corporate tax relief from 25 to 50 million.

"82% of this tax is paid for by corporations headquartered out of North Dakota," says Schneider.

Republicans say it's only fair to also share the state's wealth with the businesses who have made investments in our state.

Republican Senator Rich Wardner says, "It's the corporations that are the economic engine of this state."

It's still early in the session, and the dollars attached to the relief may change. But currently $700 million is proposed in property tax relief alone.

"We are going to assure that every North Dakota citizen gets as much relief as this state can responsibly and in the future sustain in direct tax relief," says Representative Craig Headland.

Wardner says, "as we take a look at tax policy for businesses and corporations in the rest of the session. That's what we got to keep in mind, how do we keep this economic engine going."

North Dakota is not alone in reducing taxes.

According to the Midwest Council on Governments, 13 states are proposing income tax cuts this session.

9 states are looking at reducing corporate taxes.

And in five states the Governor or legislature are proposing repealing income taxes.

By the way, no other state than Alaska has repealed it's income tax.