I’ve been deeply skeptical of Tom Emmer’s commitment to support high-tech innovation in Minnesota. At a BIO forum for candidates running for Minnesota governor, Emmer’s lackluster performance earned him a big, juicy “F” from MedCity News.
So it was a pleasant surprise when Emmer, now the Republican Party’s nominee, debuted proposals earlier this week to boost job creation in the state. Among his ideas: expand the recently passed angel investment tax credit, and beef up incentives for research and development.
“Accelerate the growth of start-up companies and subsequent jobs through expansion of the angel investor tax credit. Minnesota recently enacted legislation to provide a tax credit for investors in early-stage companies. Tom Emmer believes that this credit should be expanded to provide more help to early-stage enterprises, many of which are highly mobile technology companies, so they can attract venture capital investments and create new jobs and innovation here in Minnesota.“
Bravo, Tom! Only one tiny problem: You voted against the very policies you now embrace.
In March, Emmer was one of less than two dozen lawmakers who voted “no” on House Bill No. 2695, an omnibus jobs bill that created Minnesota’s first-ever angel credits through a five year, $60 million program signed into law by Republican Gov. Tim Pawlenty.
The vote was not close: 112-20! Look folks, it’s not as if 2695 was a divisive federal stimulus or healthcare reform law, neither of which earned a whole lot of Republican votes in Congress.
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A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
So it’s safe to say that 2695 passed with overwhelming bipartisan support — a rare occurrence these days in St. Paul. (The Senate voted 58-3 to approve a companion bill.)
In fairness, 2695 was a large bill that did many things. A no vote doesn’t necessarily mean Emmer opposes angel credits. A spokesman for Emmer did not return a message seeking comment.
But what does it say about Emmer’s economic acumen when he votes so far outside the mainstream of his own party, and against policies widely embraced by Minnesota’s business community — and now himself?
In addition to angel credits, 2695 doubled the size of the research and development tax credit to 10 percent for the first $2.5 million spent on R&D and another 2.5 percent for more.
Emmer apparently likes this idea, as well:
“Increase Minnesota employers’ opportunities to grow knowledge and technology jobs by expanding the state Research and Development Tax Credit. Minnesota created the first state R&D credit almost thirty years ago. Today, however, its credit is among the lowest in the United States and puts the state’s companies at a competitive disadvantage. Tom Emmer will expand the R&D credit to regain Minnesota’s competitive footing with other high-tech intensive states.”
Loved the part about how Emmer complains that Minnesota’s R&D credit is among the lowest in the nation. Here’s an idea on how to fix that problem: it’s something I like to call “Don’t vote against an expansion of the R&D credit.”
Radical stuff, I know.
Sarcasm aside, it’s good to know that should Emmer win the election, the new governor of Minnesota supports expanding these programs. And past experience tells us, it’s easier to expand a program than to create or kill one.
But Emmer’s flip-floppiness also tells us that politics is not as black and white as it seems. Republicans normally hold the edge on business stewardship, but it was two Democrats — Rep. Tim Mahoney (St. Paul) and Sen. Kathy Saltzman (Woodbury) — who championed the credits for years.
Instead of supporting sound policy, we get one Republican (Emmer) voting against the bill that created the credits, and another Republican (Ted Lillie, who’s running against Saltzman) who bizarrely derided them as benefiting only the “elite few” near the University of Minnesota.
Oy, my head hurts.
