Dayton unveils revised budget plan

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Gov. Mark Dayton had no big surprises in his revised budget proposal announced Thursday.

As hinted earlier this week, Dayton scraped plans to expand sales taxes to things like clothing and services. With that, a $500 property tax rebate for homeowners was also taken out.

What remained is a fourth tier income tax bracket that would increase taxes for the top 2 percent of wage earners. MPR reported the new income tax rate would be 9.85 percent for individuals with more than $150,000 of taxable income, and couples with more than $250,000.

Also included, is the increased tobacco excise tax that would raise the tax on a pack of cigarettes by 94 cents.

Dayton also kept the "snowbird" tax that would make Minnesotans who spend the winter in warmer places start paying taxes.

Dayton says the increased revenue would also make it possible to fund a $750 million bonding bill.

Republicans say the governor's plan falls short, raising concerns about increased income taxes for the wealthy.

They offer an alternative plan.

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