Article Photos

FAIRMONT - Pat Anderson is running an unconventional campaign for governor in Minnesota. She's making an understanding of economics a key tenet.

Anderson, a Republican, visited Fairmont on Thursday as part of a statewide tour. She announced her candidacy Monday. She is one of eight Republicans seeking the office, and plans to abide by the party's endorsement process.

The 43-year-old former state auditor wants to transform how the state collects taxes, with an eye on making Minnesota's business environment far more friendly.

"We are losing on our borders," she says of Wisconsin and South Dakota attracting business away from Minnesota. "And that is because of our tax and regulatory environment. Minnesota has the third-highest corporate taxes in the world. ... That's right, in the world."

Anderson proposes eliminating corporate taxes, which she says are simply passed down to consumers anyway. She also favors lowering personal income taxes. Both of these measures are aimed at stopping the state from putting obstacles in front of production.

On the flip side, she proposes a broadening of the state sales tax to items such as clothing purchases and services. Combined with the tax cuts, the concept is meant to be revenue neutral for the state. At least initially.

Anderson said removing barriers for producers will create jobs in the state. More jobs means more state revenue, in addition to a healthier business climate. An example she points to is Texas, where two-thirds of the nation's job creation has taken place recently. She said Texas is growing jobs and has no budget deficit, unlike Minnesota.

She says economists agree that it is better to tax consumption than production, and she believes there is bipartisan support in the state to revamp the tax system. She noted that for those concerned about the poor being hit hardest by the sales tax, she would propose a tax rebate to maintain tax fairness.

Anderson says the world is changing, with global trade growing and service industries more prominent. She says it is not enough for Minnesota to have intelligent, hard-working citizens when they cannot compete at a global level because of an outmoded tax system.

As for state spending, Anderson favors limited government. The state is involved in too many aspects of people's lives now, and budget deficits are the result, she argues. She worries about proposals to expand state services to include "free" health care, child care and college tuition.

She also believes the state mandates too many services through local governments, which have all the responsibility and little say in how programs are carried out.

Similarly, as governor, she would push to cut ties to the federal government. As one example, she said she would push to get Minnesota out of the federal No Child Left Behind education initiative. The program offers states money, but too many strings, she believes.

"Teachers and parents should work together to make decisions for the children," she said. "One hundred years ago, we did it that way and it worked fine. Then, at some point, things became centralized."

Anderson grew up in Forest Lake, the oldest of five children. She began her political career in Eagan, as a City Council member. She later served as mayor. In 2002, she was elected state auditor. She had managed two businesses prior to her election. She was defeated for re-election in 2006.

She most recently served as commissioner of the Minnesota Department of Employee Relations, managing its merger with the Minnesota Department of Finance. She currently serves as president of the MN Free Market Institute.

She holds a bachelor's degree in international relations from the University of Minnesota, and has a master's degree in public administration from Hamline University.

She and her husband, Doug Gallwas, live in Dellwood with their four teenage children. She also has two college-age sons.