Dayton: Tax rich to fix deficit
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ST. PAUL, Minn. - 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.
"This is a very tough budget for very hard economic times," Dayton said.
Dayton said his proposal would shield 95 percent of state taxpayers from tax increases, while making the top earners pay a proportionate share of income in state and local taxes. The plan would restore recent
