Dayton's budget proposal: List of highlights
Go Deeper.
Create an account or log in to save stories.
Like this?
Thanks for liking this story! We have added it to a list of your favorite stories.
Gov. Dayton released his budget and tax proposals this morning to the 2013 Legislature. The two-year budget plan would increase spending from $36.8 billion to $37.8 billion.
Here are some of the highlights.
• Cuts the sales tax rate from 6.875 percent to 5.5 percent
• Extends the sales tax to clothing costing more than $100
Turn Up Your Support
MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all.
• Extends the sales tax to legal, accounting services
• Increases income taxes on couples with taxable income of $250,000 or more. Single filers at $150,000 or more; the new bracket would be 9.85 percent, compared to the top rate now of 7.85 percent
• Raises cigarette taxes 94 cents per pack
• Provides property tax relief through a $500 rebate for Minnesota homeowners
• Reduces corporate tax rate by 14 percent, from 9.8 percent to 8.4 percent
• Increases education spending by the following:
-- $240 million more for higher education;
-- $118 million for K-12 schools;
-- $44 million for early childhood education;
-- $40 million for all-day kindergarten.
• Outlines $5.1 billion in cost savings and reductions over four years through "reform and responsible fiscal management."
