Governor Dayton is coming to Hutchinson (my home) today to talk to business and elected officials about Hutch Tech's decision to move all manufacturing to its plant in Eau Claire, WI, the Leader reports:
Gov. Dayton will meet with Hutchinson Technology Inc. President and CEO Wayne Fortun and community leaders during a special visit to the city Wednesday.
Dayton will be accompanied by Mark Phillips, commissioner of the Minnesota Department of Employment and Economic Development, and Mark Loftus, director of Business and Community Development for DEED. . . .
It's likely that the Twin Cities twittersphere will see a lot of Republicans suggesting that HTI decided to make the move in order to take advantage of a new two-year tax credit/tax deduction for businesses relocating to the Badger State.
One such tweet and retweet, from Republican Senate Majority staffers, is illustrated by the screenshot below:
Could it be? Probably not.
Here's what Governor Walker himself had to say about it:
Madison–Governor Scott Walker today issued the following statement on the Assembly and Senate’s passage of the Relocation Tax Credit with bipartisan support.
“The relocation tax credit will help us attract new businesses to Wisconsin that will createjobs and improve our economy,” said Governor Scott Walker. “As we make our case to businesses around the globe that we are transforming Wisconsin into a job-friendly state, this tax credit will offer an immediate incentive to relocate to our state. The work of Representatives Joe Knilans and Al Ott and Senators Van Wanggaard and Terry Moulton has helped open Wisconsin for business.”
The legislation will exempt businesses from income and franchise taxes for two years for businesses that have not done business in Wisconsin for two years or more.
Who are we going to believe--the deputy chair of the Republican Party of Minnesota or the Governor of Wisconsin? Tough call.
But take a look at the end of the second source Brodkorb and Whalen cited in the tweet above (http://ow.ly/4a4nM):
The $1 million tax cut bill he signed Monday takes effect this tax year and affects taxes due in 2012. Companies that have not operated in the state for two years could essentially get their corporate and personal income tax obligation in Wisconsin erased for a two-year period. At least 51 percent of the workforce's payroll, or at least $200,000 in wages, must be paid to the workers in Wisconsin to qualify.
Since HTI's Eau Claire manufacturing plant (top) has been open and operating for many years, this MNGOP talking point is likely nonsense, but I'm sure we'll see and hear it a lot today.
Photo: HTI's Eau Claire plant.
Related post: Playing politics with pain: Glenn Gruenhagen blames Hutch Tech lay-off on taxes
The spokespeople for the party of business never fail to amuse with their ignorance of actual business. Anyone who's ever been around corporate decisions to close a plant or relocate manufacturing knows this decision process started long ago and has nothing to do with Scott Walker's "immediate incentives."
Posted by: Charlie Quimby | Mar 18, 2011 at 10:39 AM