Dayton Unveils Budget Today 22 Jan 13

Governor Dayton unveils his budget plan today (TUE), and many are wondering what tax increases he will propose. Democratic leaders at the legislature have basically said there will be tax increases — but haven’t said which ones. House Speaker Paul Thissen says they agree with a lot of the governor’s goals: a budget with no tricks or gimmicks, sturdy going into the future and a budget that focuses on Minnesota’s priorities and works for middle-class families. Republican Representative Jennifer Loon warns if there are big tax increases in the governor’s budget, it could stifle some of the economic recovery. “The best thing we can do for Minnesotans,” Loon says, “is to have jobs and economic opportunity.” The Governor’s proposed 2-year budget is expected to rely heavily on tax increases to solve a $1.1-billion projected deficit and boost spending. Dayton has long said he would push for higher income taxes on top-end earners, though he has not said what that rate will be and how much someone can make before it will kick in. Sales, property and corporate taxes are also on the table, with rate reductions possible for some.