Horner releases jobs plan
Independence Party gubernatorial candidate Tom Horner outlined a broad proposal Thursday aimed at revitalizing Minnesota communities and creating new jobs.
Part of his four-year plan covers tax reform, including a sales tax exemption for businesses on the purchase of capital equipment, and more research funding for the University of Minnesota.
Horner, a former PR executive, also said he would take a hard look at capping the state's mortgage interest tax deduction.
"I don't think that we ought to eliminate the mortgage deduction," he said. "I don't think that we ought to exclude second homes. But I do think it is reasonable to say that at a certain level Minnesotans shouldn't be subsidizing total investment in mortgages."
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There are some limits in place now: State law lets Minnesota taxpayers deduct on interest paid on loans of up to $1 million toward primary or secondary homes.
The mortgage deduction reduces state income taxes for more than 700,000 taxpayers each year, according to state figures. The exemption costs the state more than $400 million a year.
Horner also wants to redesign the state's economic development efforts and phase out Gov. Tim Pawlenty's JOBZ program.
"We don't often enough have a net increase in jobs," he said of the program. "What we have are jobs moving from one community to another community."
Horner also proposed the use of state bonding to expand high speed broadband communication. He said the move would require a constitutional amendment to extend allow bonding beyond traditional bricks and mortar projects.
Horner faces several other IP candidates, including publisher Rob Hahn, in an Aug. 10 primary.
(The Associated Press contributed to this report.)