Governor Dayton is calling for an income tax increase on Minnesota’s wealthiest citizens. Dayton’s budget proposal released Tuesday would create a new 4th tier income tax bracket which would apply to taxable income over $250,000 for married joint filers and single filers who earn above $150,000. Dayton says the new rate would apply to only 2% of Minnesota taxpayers, and would raise $1.1-billion in the next budget cycle. The Governor’s budget also proposes big changes to the state’s sales tax. It would apply the sales tax to some services now exempt, but would continue to exempt food and medical services, along with clothing purchases under $100. More things would be subject to the state sales tax, but its overall rate would drop, and Minnesota would reportedly go from the 7th highest sales tax rate to the 27th highest among US states. Dayton also wants the state to spend an extra $52 per public school student, which equals a more than $600-million increase in education spending. Dayton is also pushing for more money for all-day kindergarten programs, early education scholarships and for the state’s public universities and colleges. His plan for more education spending accounts for almost two-thirds of his proposed state spending increases.