DFL to Approve Record Tax Hike
According to the Star Tribune, the DFL-controlled Senate is poised to approve a record tax increase this weekend. The new tax increase would raise taxes on the highest earners in the state. The increase will affect those making over $250,000. The new rate will be 9.7 percent, the highest top rate in the country. The proposal would create nearly $1 billion in new revenue, which would be used for education and property tax relief. The increase would affect K-12, early education and tuition increases. It would also increase aid to local governments in the hope of offsetting the recent property tax increases around the state. The Pioneer Press is reporting that Gov. Pawlenty will likely veto the tax increase. If that happens, the DFL will need to find some Republican votes to override the veto. The more likely scenario is that the Governor and the legislature will propose new budgets that represent more of a compromise.