Minnesota Governor Proposes Tax Increase for Wealthiest Residents
February 15, 2011, 2:49 pm
By EMMA GRAVES FITZSIMMONS
NYT
While many of the nation’s governors are proposing budgets that suggest anything but a tax increase, Gov. Mark Dayton of Minnesota on Tuesday advocated for higher taxes on the state’s wealthiest residents.
Mr. Dayton, a Democrat elected in November, had campaigned on an explicit promise to raise taxes on the richest Minnesotans and said his budget proposal for the next two years amounted to a fulfillment of that pledge. But a standoff appears imminent.
After the fall election, Republicans hold majorities in both chambers of the State Legislature. And legislative leaders said on Tuesday that they would not approve the tax increases.
Like many states around the country, Minnesota is soon facing a significant budget gap: in its case, an estimated $6.2 billion deficit over the next two years. Mr. Dayton’s budget would raise about half of that money through tax increases on the wealthy, including creating a new income-tax bracket of 10.95 percent for many households that make more than $130,000. The highest state tax rate is currently 7.85 percent for households making more than $114,000. Mr. Dayton’s plan also calls for a temporary surtax on incomes over $500,000 and a state property tax on homes valued at more than $1 million.
(More here.)
By EMMA GRAVES FITZSIMMONS
NYT
While many of the nation’s governors are proposing budgets that suggest anything but a tax increase, Gov. Mark Dayton of Minnesota on Tuesday advocated for higher taxes on the state’s wealthiest residents.
Mr. Dayton, a Democrat elected in November, had campaigned on an explicit promise to raise taxes on the richest Minnesotans and said his budget proposal for the next two years amounted to a fulfillment of that pledge. But a standoff appears imminent.
After the fall election, Republicans hold majorities in both chambers of the State Legislature. And legislative leaders said on Tuesday that they would not approve the tax increases.
Like many states around the country, Minnesota is soon facing a significant budget gap: in its case, an estimated $6.2 billion deficit over the next two years. Mr. Dayton’s budget would raise about half of that money through tax increases on the wealthy, including creating a new income-tax bracket of 10.95 percent for many households that make more than $130,000. The highest state tax rate is currently 7.85 percent for households making more than $114,000. Mr. Dayton’s plan also calls for a temporary surtax on incomes over $500,000 and a state property tax on homes valued at more than $1 million.
(More here.)
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