Senate DFL unveils tax plan with no new alcohol tax


Minnesota Senate Democrats on Tuesday unveiled their own version of a plan that would amount to big tax changes in the state.

As expected, the proposal differs sharply from a House proposal in several big ways, the Star Tribune notes. Senators did not swallow a House plan to raise the alcohol tax as much as $4 for a case of beer.

The Senate version also does not include the House proposal for a temporary income tax surcharge on high-salary earners who rake in $500,000 a year, the Star Tribune reports.

Overall, the Senate DFL proposal aims to collect $1.8 billion in new taxes in an effort to cut the state deficit, lower property taxes and create new cash for economic development, the newspaper reports.

Another item that is not in the plan is Gov. Mark Dayton's proposal to create a new top income tax tier for the state's highest earners and instead raises taxes for a wider income spectrum. Married filers with a taxable income above about $141,000 a year would pay a higher rate, as would single filers who make $79,730, the Associated Press reports.

Also included in the DFL plan: A 94 cent-per-pack hike in tobacco taxes and a first-ever tax on clothing, for which low-income Minnesotans would get a credit.

The Senate DFL plan also aims to lower the overall sales tax rate to 6 percent from 6.875 percent.

Next Up