Skip to main content

House DFL tax plan has surcharge on high earners, less aid than Mayo sought

  • Author:
  • Updated:
    Original:

DFLers in the Minnesota House unveiled a tax plan that would increase state revenue by $2.6 billion, largely through higher income taxes on the wealthiest residents and hikes on cigarette and alcohol taxes.

While Gov. Dayton and state Senate leaders have also endorsed a new income tax bracket for high earners, the House plan also includes a two-year surcharge on the wealthiest Minnesotans. That money would be used to pay off the state's debt to its school districts.

Republican leaders labelled the plan "taxes gone wild."

The Associated Press reports the measure would allocate less money for improvements in Rochester than the Mayo Clinic is seeking. Mayo has said $500 million in upgrades to infrastructure are needed for the clinic to proceed with a 20-year, multi-billion dollar expansion. The House would authorize $300 million in state money, with an option for Rochester and Olmsted County to put in another $100 million, the AP says.

The House plan will need to be reconciled with those of the Senate and Governor Dayton in coming weeks. As MinnPost reports, all of the plans involve tax increases but each has its own variations.

The Senate tax plan includes lowering the state sales tax and extending it to currently untaxed services, in a move reminiscent of the tax overhaul that Gov. Dayton proposed and then dropped.

Next Up

MNASecondStrike

Minnesota nurses take vote on whether to hold second strike

The results will be determined Wednesday night.

unsplash medical marijuana

OCD, irritable bowel syndrome added to MN's medical marijuana list

They are the two latest qualifying medical conditions for Minnesota's marijuana program.

Screen Shot 2022-11-30 at 9.27.45 AM

Fundraiser created for family-owned Cô Tu' Oriental Cuisine after shooting

Support from the community will go towards medical expenses and overhead costs for the restaurant.

Erica Shameka Roberts

Police: Minnesota murder suspect arrested in Texas

Erica Roberts has been on the run since March.

JackknifedSemisI35

Jackknifed semis close I-35 northbound near Faribault

There are icy conditions across Minnesota

court room

Red Lake man gets 12 years for murder of his cousin

Charges state the man beat the victim with a metal cabinet and its drawers.

Snow covering cars in Twin Cities

How much snow fell in Minnesota on Tuesday?

More than eight inches fell in parts of the Twin Cities.

26136405486_58b42ceec7_k

Runways shut down at MSP Airport due to heavy snow

Some spots in the Twin Cities could see up to 8 inches of snow on Tuesday.

Related

House passes tax bill over DFL objections

The Minnesota House approved a tax bill that would freeze business property taxes and create several new tax breaks. Governor Dayton and other DFLers say the freeze will drive up the state's budget deficit in the next biennium. The tax breaks include incentives for investing in startup companies and hiring veterans.