Senate Passes Tax Hike
Just a follow-up to yesterday's entry. In a rare Saturday vote, the Senate passed a new top income tax rate. According to the Star Tribune, seven DFL senators voted against the bill, making it highly unlikely that the Senate will be able to override the likely Governor's veto. The new bill would add $300 million to the K12 budget over the next two years, the Pioneer Press reports. Senate Republicans took two hours to speak out against the bill. They called it a job-killer that would have serious consequences for the state's economy. They also conjectured that the new top rate will drive the wealthiest Minnesotans out of the state. Both parties agreed that the tax system is in need of reform because middle-income Minnesotans pay a higher portion of the state's revenues than high-income Minnesotans.