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Minge bill puts subsidy debate on national ag... Page 4 of 6 <br /> critic of using public subsidies to influence location decisions of any <br /> • type of business. Sports teams and other businesses would "have to <br /> make their location decisions on economic fundamentals, not on <br /> incentives," Rolnick said. <br /> Reaction to the bill from Minge's congressional colleagues is mixed, <br /> with some applauding the goal but not necessarily the strategy of <br /> using a new excise tax to achieve a curb in subsidies. <br /> "I have thought for a long time that we should stop senseless <br /> smokestack chasing," said Rep. Gil Gutknecht, R-Minn. <br /> But Gutknecht, along with Rep. Bill Luther, D-Minn., and Rep. <br /> Bruce Vento, D-Minn., stopped short of supporting the Minge bill. <br /> Their reasons ranged from opposition to a new federal tax to concern <br /> about whether the federal government should interfere with states <br /> and cities as they try to recruit businesses. <br /> Rep. James Oberstar, D-Minn., said he opposed the whole idea of <br /> limiting subsidies, saying that would undermine the ability of rural <br /> areas -- like his and Minge's districts --to compete with urban <br /> centers for jobs. <br /> Support is slim <br /> Asked if he thought Minge's bill had a chance to become law, <br /> Oberstar said, "I think not. I hope not. I'll do all I can against it." <br /> Dean Peterson, a spokesman for Rep. Jim Ramstad, R-Minn., called <br /> the Minge bill "a non-starter," because of both the new tax and the <br /> federal role in state decision-making. <br /> The Minge bill exempts some forms of government subsidies to <br /> business from the proposed excise tax, including subsidies used for <br /> worker training and those that aid an entire industry rather than one <br /> company. <br /> The legislation would have no effect on continuing subsidies made <br /> on past deals, only on subsidy arrangements reached after the bill <br /> became law. <br /> Legislatures in 10 states, including Minnesota, have passed <br /> resolutions urging Congress to end targeted subsidies that cost state <br /> and local governments millions of dollars every year. <br /> Many economists argue that the money spent on subsidies is wasted <br /> and that state and local governments would keep and attract business <br /> more effectively by paying more attention to education,police <br /> • protection, environmental cleanups and other activities that benefit <br /> all employers. <br /> http://websery 1.startribune.com/cgi-bin/stOnLine/article?stories=l0&pgraphs=l&orderBy=PUB 12/3/97,&next <br />