ST. PAUL, Minn. (AP) – Gov. Mark Dayton is asking Minnesota’s wealthiest citizens to pay more than a billion dollars in new income taxes in order to boost state funding for schools and colleges by nearly $640 million.
The Democratic governor released the updated budget proposal Thursday. As expected, Dayton dropped a proposed sales tax overhaul that generated strong opposition from business leaders.
Dayton also jettisoned a $500 yearly property tax rebate, but puts additional money into an existing program that provides property tax rebates and beefs up a property tax credit for renters. He boosts state aid programs to city and county governments, and wants money for local economic development initiatives.
Dayton also continues to call for a tobacco tax increase and for eliminating tax loopholes that benefit corporations. He says it’s not responsible budgeting to simply draw a line against all tax hikes.