Former state auditor Pat Anderson said she would favor expanding the sales tax to clothing and some services in exchange for cuts in corporate and personal income taxes.
The Republican candidate for governor kicked off a 14-city tour Monday morning to tout her plans to change the state.
She said she also favors eliminating business subsidies of any kind, like JOBZ - Gov. Tim Pawlenty's rural economic development initiative.
"I think the state needs to eliminate subsidies and at the same time, eliminate the corporate income tax," Anderson said. "I think any business owner would gladly take that over the other."
Anderson is one of eight Republicans running to succeed Pawlenty, who announced in June he won't run for a third term. Ten Democrats are either running or considering a run for governor.
Anderson's announcement comes exactly one year before the 2010 election.