DFL Gov. Mark Dayton used a new monthly revenue report Monday to bolster his opposition to provisions in the Republican-crafted tax bill that he reluctantly signed last month.
The May revenue review from Minnesota Management and Budget (MMB) shows net individual income tax receipts were $117 million lower than the February forecast. That number offset higher than expected receipts from the sales tax, corporate tax and other revenues. In total, revenues were down $63 million, or 4.1 percent.
In a statement, Dayton said the report reaffirms the uncertainty of the state’s financial future
“It also underscores the dangers created by the Republicans’ irresponsible tax bill, which will cost our state an estimated $5 billion over the next decade,” Dayton said.
Dayton opposes provision in the bill that provide tax breaks for tobacco products, increase the estate tax exclusion and freeze in the business property tax.
Dayton vetoed operating money for the Legislature, in hopes of convincing Republican leaders to renegotiate those issues, as well as provisions in two budget bills. So far, the strategy has not paid off, although a private meeting among the governor and House and Senate leaders was in the works for Tuesday.
As usual, MMB officials say the variances in their monthly revenue reviews should be interpreted with great caution.
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