Gov. Mark Dayton's $37 billion budget would shave more than half of the state's $6.2 billion deficit over the next two years by increasing income taxes on the wealthiest Minnesotans, something he pledged to do during last year's campaign.

 According to Dayton's office, 95% of Minnesotans will experience no tax increase under the proposed budget.  Dayton proposes a new income tax tier at 10.95% for joint filers over $150,000 and head of household filers over $130,000; and a temporary income surtax of three percent for all filers over $500,000.  He also proposed a statewide property tax on home values over $1,000,000.   

Dayton also outlined $775 million in cuts for health and welfare programs on Tuesday, the Associated Press reported. MinnesotaCare is a state-subsidized health care plan for the working poor, who pay premiums on a sliding scale. It offers less generous benefits than federal health care programs.
Although Dayton's plan would increase funding for K-12 public education, he said he won't immediately repay nearly $1 billion in aid that was delayed to local schools during the budget battle last year. 


Older Post

More school funding, property tax relief

Newer Post

GOP rips Dayton's tax, spending plans