Asa's Speeches

Keep in mind, these are pretty rough. I haven't cleaned them up yet. For the most part, this is just an outline. When I actually gave the speech, I used this as a memory cue. Later, I'll put up this speech in a more reader friendly paragraph format.

Itro:

I. Attention Catcher: In 1999, ND ranked 48th in the nation for average annual wage. Our average annual wage was 30% below the national average.

II. Listener Relevance: This has been a large factor in the exodus of our people and has created many economic problems for the state.

III. Speaker Credibility: I was born and raised here in North Dakota. After doing some research, I have learned something about what businesses look for when choosing a location to relocate or expand to.

IV. Thesis Statement: For the sake of drawing in businesses, North Dakota should lower or even eliminate our corporate income tax.

V. Preview: Let’s look into some of the benefits of keeping the corporate income tax, see why the advantages of dropping it out way those of keeping it, and look into ways we can adapt to a life without the tax.

Body:

I. First Main Point: There are many good reasons to keep our corporate income tax.

i. SUB: Big companies bring in a lot of money; it would be nice to tax them for additional revenue.

ii. SUB: We can use this additional income to fund other “Grow ND” projects such as start up funds for new businesses or funding for research committees.

b. Subpoint: It is often easier to maintain the status quo.

i. SUB: Initially, there may be less money in the state’s budget. Additional sources of revenue may be needed. Finding the extra money may require a tax increase, and these are rarely readily accepted.

ii. SUB: There are also a lot of North Dakotans who don’t work for a corporation and don’t plan to. They may not want to pay additional taxes if they don’t feel the end result will benefit them.

Transition: Keeping the corporate income tax certainly seems appealing, but dropping it will ultimately be more beneficial.

II. Second Main Point: Doing so will make North Dakota a more business friendly state.

a. Subpoint: Dropping the corporate taxes has been proven effective in other states.

i. SUB: Nevada, Wyoming, and perhaps most importantly South Dakota are all successful that have no corporate income tax. South Dakota has neither a corporate nor a personal income tax. In addition, they have a lower over-all tax burden then us. South Dakota has been very successful in drawing jobs and businesses from higher tax states such as Minnesota. They also grew by about 63,000 during the 1990s, compared to North Dakota’s 6,300. They also saw population increases in 34 of their 66 counties, versus six of our 53.

ii. SUB: North and South Dakota are both very similar in terms of geography and labor. In fact, when Ware Manufacturing moved to South Dakota, they claimed that if things hadn’t worked out, North Dakota was their second choice. South Dakota’s taxes gave them the advantage in this situation. By drawing in a few key businesses, they have helped their image as a technological state, something that businesses look for these days. 20 years ago, South Dakota attracted Citibank, a large banking and credit card company that has been invaluable in building their economy. Credit card companies now employ nearly 8,000 workers in Sioux Falls. This has led to a number of other financial advantages, such as lower interest rates, which has helped pull even more people into the state.

b. Subpoint: More higher paying jobs will also improve morale in North Dakota.

i. SUB: According to www.growingnd.com, at least 10% of North Dakotans have to work more then one job to support themselves and their family. That is nearly double the national average. Many of these people were between the ages of 25 and 44. This is leaving people discouraged by the lack of well paying jobs. Students who grow up with this may be hesitant to stay in a stagnant economy.

ii. SUB: If people are satisfied with their jobs or job prospects, they will be less likely to leave. Many studies have found that better jobs or career advancement was one of the largest factors in determining whether or not people would remain in North Dakota. Additional jobs would also be helpful if we wish to draw in others.

Transition: Dropping the corporate income tax will be helpful, but it will require some work and sacrifice.

III. Third Main Point: Without the corporate tax, we will lose a source of state revenue.

a. Subpoint: We will have to work on changing the tax burden to pick up the slack.

i. SUB: To begin with, we could ease into the lowered corporate rates. This would prevent a shock to the economy. Plus, just because we don’t tax their income, it doesn’t mean we can’t tax them. We could increase some of their other taxes while still giving the appearance of a business friendly state.

ii. SUB: Small changes could be made to other taxes to make up for the loss. An increase in the personal income tax and sales tax would both generate revenue.

b. Subpoint: Another solution would be to take advantages of the resources we have as a state.

i. SUB: North Dakota has vast reserves of energy that could be tapped for additional income. Western North Dakota has both Coal and Oil that could be sold off to other states or companies. We could then rely more heavily on wind energy, since North Dakota seems to have wind in abundance. In fact, some legislators are taking this idea seriously. In the January 18 edition of The Forum, House Minority Leader Merle Boucher said that they were looking into using the state’s water, minerals, and agriculture to create money.

ii. SUB: Tourism is an industry that is just beginning to take off in North Dakota, with our beautiful, wide open terrain drawing in people from around the world. Medora is a popular tourist destination that is pulling in money from outside of the state. Bird-watching has also been listed as a possibility in increasing tourism.

Transition: All of these factors will work towards improving our population and economy.

Conclusion:

I. Thesis Restatement: For the sake of our future, North Dakota should drop the corporate income tax.

II. Main Point Summary: You’ve all just seen some of the benefits of keeping the corporate income tax, the benefits of dropping it, and ways to adapt our state can adapt after dropping it.

III. Clincher: Dropping the tax may do some damage, but not as much as the $384.5 million that we lost over a three year period when our citizens left for a better chance in a different state.

This is the informative speech that was given before the class.

INTRO: I. Attention Catcher: North Dakota is afraid of change and commitment. II. Listener Relevance Link: This fear is holding us back as a state. We are losing jobs, people, and as a result, revenue. III. Speaker Credibility: I was born and raised in North Dakota, and after a little research, I have an understanding of what businesses look for when choosing a location. IV. Thesis Statement: The North Dakota state government is responsible for luring in better paying jobs. V. Preview: To do this, we must change our state’s image, advertise our self to the world, and learn from examples. BODY: I. First Main Point: How can North Dakota change its image? a. Subpoint: We have a reputation as a bleak, racially homogeneous state. (theonion.com) Worse, however, is the way businesses view us. With an unemployment rate of 2.8% and a corporate income tax rate up to 10.5%, we are seen as high on taxes and low on employment. i. To combat this problem, we could follow the lead of South Dakota, whose no corporate or personal income tax has been drawing in businesses from high tax areas such as Minnesota. To expect such a major change in a short time is unreasonable. Minor changes should be made until we eventually reach this stage. ii. Tax incentives will also provide businesses with a reason to come to our state. Different areas could be set up where taxes are lowered for certain types of companies. For example, any area 100 miles west of Bismarck would get lowered property taxes for financial institutions. Also, renaissance zones can provide excellent benefits to companies. Renaissance zones are areas with low taxes, meant to stimulate growth. Downtown Fargo is one renaissance zone that could be particularly beneficial to businesses looking to move into North Dakota. b. Subpoint: Some of these plans may initially damage our economy and hurt state spending. Alternative will need to be found until companies establish themselves. i. To begin with, the tax burden could be distributed to other areas such as sales and property taxes. Higher taxes on gas may provide necessary funds as well. ii. In addition, North Dakota has vast amounts of energy reserves that could be tapped for income. Western North Dakota has oil and coal, while the rest of the state has an abundance of wind that could be converted into energy through windmills. TRANSITION: Reworking our tax laws won’t do much good unless we let others know about them. II. Second Main Point: North Dakota suffers from obscurity. Most of our major national recognition comes from jokes at our expense. a. Subpoint: To entice businesses to our state, it is necessary to show them what we have to offer. i. Until our taxes get down to a competitive level, we need to show them that some of the statistics aren’t necessarily what they appear to be. Our corporate income tax is between 3% and 10.5%, based on income. In reality, North Dakota is one of four states that allow companies to deduct federal taxes, making their actual payments closer to 2.55% and 6.83%. ii. Our unemployment rate hovers around 3%. This may scare off companies that see a saturated market. In an average economy, this would mean that finding qualified employees would be difficult. In North Dakota, however, a 1999 study showed that 10% of all workers had more then one job. Many are working too many jobs trying to make a living. They are unhappy with their current situation and are looking for an alternative. b. Subpoint: Businesses may be more willing to expand to North Dakota if they know the quality of people we have here. i. North Dakota has 11 colleges and universities. “Most” workers in the 1999 survey had at least some level of education beyond high school and almost 10% had at least a Masters degree. The population is well educated, yet it is having trouble finding high paying jobs at their skill level. Big companies looking for qualified workers have traditionally had a lot of luck finding their employees in North Dakota ii. North Dakota also offers an excellent environment for building families. Our state boasts of having a low crime rate and excellent schools. In fact, Morgan Quitno Press rated North Dakota as the state with the lowest levels of violent crimes TRANSITION: Now that we realize the importance of image and information, we’ll take a look at what needs to be done. III. Third Main Point: North Dakota needs to be committed to this. a. Subpoint: Changes will be needed and sacrifices will have to be made to rebuild our state. i. Taxes may be higher for a while, but if as a result, more high paying jobs are brought in, the sacrifice may be worthwhile. (John Hoeven) ii. Legislators are afraid of leaving people out. In many situations, they are worried about spreading money out to everybody. Even if it means that everybody only gets a small amount. When the money is distributed like this, it does very little good. Some money that is brought in may need to be focused towards a small group such as entrepreneurs. b. Subpoint: We must be determined to let this succeed. i. According to many of the people working on Vision 2000 and Growing North Dakota, the programs worked, they were just cut down early. It was not pushed hard enough, and during every session of the legislation, its funding was lowered. In addition, party rivalries created problems in getting support for the programs. ii. Bad decisions were made that must be avoided. Eddie Dunn, the former vice president of the Growing North Dakota Association said that he regrets opposing the minimum wage increase. Their goals were also poorly made. One goal was to get a population of 700,000. The population isn’t that important if there is no standard of living. TRANSITION: North Dakotans are known for their perseverance. Let’s make sure that we are committed to seeing this through. CONCLUSION: I. Restatement of Thesis: North Dakota’s government is going to have to step up and take responsibility if they expect to see changes. II. Summary of Main Points: We will have to change our image, advertise our advantages and remain committed to our goals. III. Thirteen years ago, a panel stood before our legislators and said that change is needed immediately to ensure hope for the future. In 2003, the future is now and we can’t wait any longer.