Dayton Drops Sales Tax, Keep Top-Bracket Income Tax In Revised Budget
(St. Paul, MN) -- As expected Governor Dayton has dropped his proposal to extend the state sales tax to high-priced clothing and business services, in his revised budget plan released today. A 500-dollar property tax rebate is also out of Dayton's plan, but a cigarette tax increase remains in, as does an income tax increase for the top two percent. The governor says if Republicans don't want any tax increases, they'll have to cut 627 million dollars in spending to balance the budget -- and tell Minnesotans "where they're gonna cut, how much, who's gonna be affected, who's gonna be hurt." House Republican Minority Leader Kurt Daudt (DOWT) responds the governor's original budget "fell flat" and they're glad he retracted it -- but Daudt says Dayton's new proposal continues to be a tax on the middle class with a cigarette tax hike. Dayton also continues calling for a tax on snowbirds -- people who live in Minnesota only part of the year -- plus closing what he calls corporate tax loopholes.