The corporate franchise tax rate in Minnesota is figured by taking into account a corporation's property holdings and the percentage of its payroll and sales in Minnesota. Minnesota's formula ranks sales the highest at 75 percent, and Reed says this encourages businesses to locate their corporate headquarters in Minnesota.
Cox has watched state government for 30 years and says the current governor is the "worst governor for fiscal management" that he has seen. Minnesota has a tradition of economic success because of its productive workforce, Cox says. Now, schools are in perennial trouble. It's unlikely that Minnesota will be able to continue to provide that level of productivity. Cox maintains that this will ultimately be bad for business. "The relentless drive by the business lobby has put the future workforce at risk," Cox says. "It will come back and bite them in the end."