• Aims to raise $2.2 billion
• Increases current income tax rates of 5.35, 7.05 and 7.85 percent to 6, 7.7 and 8.5 percent, respectively
• Establishes new income tax rate of 9.25 percent starting at incomes above $250,000 for married couples filing jointly, and $141,250 for single filers
• Income tax increases last five years; after that, rates revert to current levels
HOUSE DFL PROPOSAL
• Aims to raise $1.5 billion
• Establishes new income tax rate of 9 percent starting at incomes above $300,000 for married couples filing jointly and $169,700 for single filers
• Replaces the home mortgage deduction on state taxes with a limited tax credit capped at $420 and eliminates state deductibility of property taxes
• Raises cigarette tax by 54 cents a pack
• Raises alcohol tax by 3 to 5 cents per drink
• Replaces deductions for child care and education with a child credit capped at $200 per child
• Eliminates tax breaks for long-term care, organ donation and certain farm income
• Repeals certain foreign business tax breaks
GOV. TIM PAWLENTY, R
• No tax increases
• Raises nearly $1 billion through sale of bonds tied to money the state will get through 1998 tobacco settlement
