Senate Republicans, led by Minority Leader David Hann, R-Eden Prairie, and Sen. Dave Thompson, R-Lakeville, proposed cutting income tax rates by half a percentage point. 

The rate cut would reduce the lowest rate from 5.35 percent to 4.85 percent, for instance, while cutting the new top fourth tier rate from 9.85 percent to 9.35 percent. 

The average cut for a single filer would be $167, with a reduction of $524 for married filers. The total cost would be $1.1 billion during the next biennium.   

Senate Republicans have also proposed cutting taxes for families with children, veterans and seniors. 

The across-the-board income tax cut contrasts with House Republicans, who are planning targeted relief of $2 billion for various constituencies and interest groups.  

Senate Majority Leader Tom Bakk, DFL-Cook, has said he won't repeat the policies of the 1990s, when legislators cut taxes during surplus years only to face more than a decade of troubled budgets once economic conditions changed.