Like most states, Minnesota has a big budget problem. But unlike most states, it’s looking to the well-heeled to help fill the gap. Gov. Mark Dayton plans to attack the state’s $6.2 billion deficit by raising taxes on the rich. —JCL
Winona Daily News:
Gov. Mark Dayton looked to the wealthy to erase about half of a $6.2 billion budget deficit on Tuesday, proposing a new top tax bracket and an income surtax that together would give Minnesota the nation’s highest income tax rate.
The Democratic governor’s plan would raise nearly $2.9 billion from the top 5 percent of taxpayers, including a new property tax on homes valued at more than $1 million.
It would also increase taxes on health care providers and corporations with foreign operations, while cutting almost $1 billion in spending for programs including MinnesotaCare health care and nursing homes.
The tax increases and spending cuts are contained in Dayton’s proposal for a two-year, $37 billion budget that guides more money into education but could also cost about 800 state workers their jobs.