The budget unveiled by Gov. Mark Dayton Tuesday probably did not catch anyone by surprise as he followed through on budget priorities highlighted during his campaign.
He said he planned to tax wealthier Minnesotans who he feels had not been paying their fair share, on a percentage basis, as compared to the middle class. Whether you agree about the fairness of that proposition or not, officials of both parties agree on the tax incidence study that showed what Dayton argues is largely true. Dayton’s tax-the-rich proposal would cut the red ink in half from about $6.2 billion to about $3.4 billion. Some higher taxes would start at a two-earner household income of $150,000 a year, an income level many do not consider “rich.”
Dayton’s budget also calls for $775 million in cuts in health care costs, one of the costs rising most rapidly in the state. Dayton’s plan would eliminate MinnesotaCare health care coverage for 7,200 adults.
Dayton’s plan actually increases slightly spending on education and maintains current spending on property tax relief programs like local government aid and other relief programs to those cities not getting local government aid.
All in all, the Dayton budget comes through as promised. It may be a good starting point for what are sure to be arduous negotiations with Republicans who have very different ideas. Minnesotans will be represented by both proposals.
The biggest battle may be over the increase in income taxes on the wealthy.
The tax rate Dayton is suggesting would give Minnesota the highest tax rate on upper income in the nation at 13.95 percent. While this is higher than Dayton’s campaign promise of no more than 11 percent, 3 percent of this is temporary.
Dayton is selling his tax increase as one that will not impact 95 percent of Minnesotans. And while Republicans continue to argue taxing wealthy folks hurts job creation, the facts have not really been on their side, at least not in any clearly identifiable way. They will have to come up with more evidence if they are to be convincing.
Comments (6)
Add commenttax tax tax the rich, dont make them get jobs
Who else is going to pay for the freeloaders who choose not to work? Other freeloaders? Their kids who learn to live off the gubmint?
Here is one, dont give them anything other than food and a dry warm place to sleep and make them get a job. Until there is not one job opening in the brainerd dispatch or other papers, there should not be any free money for anyone. Thats just my opinion.
Dayton is doing what he said
Dayton is doing what he said he would do and he got elected.
taxes & jobs
the gunions own dayton-surprise! if you raise taxes you lose jobs and gain gov't waste. why not require public service for everyone recieving welfare? i know a fellow on disability-he can gamble at a casino for 12 straight hours-job? more babies & single girls-public service would cut that waste!
Tax the casino!!
"why not require public service for everyone recieving welfare? i know a fellow on disability-he can gamble at a casino for 12 straight hours"
Before we do that why don't we tax the casino.
"Whether you agree about the
"Whether you agree about the fairness of that proposition or not, officials of both parties agree on the tax incidence study that showed what Dayton argues is largely true. "
Remember this when the Republicans start crying crocodile tears for the wealthy as they step on the back of the middle class.