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House DFLers propose surcharge on the wealthy to repay schools

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An income tax hike for the highest-earning Minnesotans has been part of the budget conversation at the Capitol for months. Now House DFLers have added another layer -- proposing a temporary income tax surcharge on the state's wealthiest one percent to pay back money the state borrowed from its school districts.

Minnesota still owes more than $800 million to the schools after borrowing money to cover past budget deficits.

The Star Tribune reports the proposed surcharge would affect those earning more than $500,000 a year and would last for two years.

MPR's report quotes House Minority leader Kurt Daudt saying Democrats want Minnesota to be number one in higher taxes. DFLers in the Senate will release their budget outline Wednesday. Majority Leader Tom Bakk tells MPR he's not sure he wants to put Minnesota among the top five states in any tax category.

Gov. Dayton's budget proposal does call for paying off the school debt this year. He's said he wants to boost state education funding, but is content to let the IOU wait until next year.

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