House DFL Tax Increase Proposals 16 Apr 13

Minnesota House Democrats are looking to bring in $2.5-billion by raising taxes on people with high incomes, those who smoke and those who drink alcohol. A tax package released Monday boosts those taxes to balance the budget, cut property taxes and increase school aid. Including a temporary surcharge on top earners, Minnesota would carry the nation’s third highest tax rate. It echoes Governor Dayton’s income tax push, but differs in the details. Under the House bill, smokers would pay a $1.60 more per-pack, and drinkers would see their tab rise 7-cents per-beer, 47-cents per bottle of wine and $1.58 on each bottle of liquor. A yet-finished Senate tax plan would also expand the sales tax to some consumer services and clothing, proposals which are not in the House plan.