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Minnesota Gov. Mark Dayton wants to raise the state's top income-tax rate temporarily to 13.95%, which would be the highest in any state, to help close a $6.2 billion deficit.

Mr. Dayton, a Democrat, on Tuesday proposed raising the top rate on couples earning more than $150,000 of taxable income to 10.95%, up from 7.85%. He also suggested adding a 3% surcharge on taxable income above $500,000 for the next two years. In addition, he wants to create a new, higher property-tax bracket for homes valued at more than $1 million.

Hawaii and Oregon currently have the highest state income-tax rates, both at 11%.

The proposals in Minnesota brought an angry response from business groups and face a major hurdle in the Republican-controlled state legislature, where leaders said they would propose their own budget balanced solely with spending cuts.

"I don't want to say this is dead on arrival," said Geoff Michel, assistant minority leader of the state Senate, but "I don't think it's got much of a heartbeat."

Republicans said tax increases would drive high-income residents and businesses out of Minnesota. Mr. Dayton said he believed "the wealthiest people in this state are better than that."

Evidence on how specific tax changes affect state economies suggests businesses deciding where to locate take many factors into account along with taxes, including work-force education levels and availability of global transportation. But in the wake of big tax boosts in Illinois, neighboring states such as Wisconsin and Indiana are trying to recruit businesses to relocate.

Many U.S. governors, both Democrats and Republicans, are holding the line on taxes this year, proposing instead to sharply cut spending and shift some of the burden of providing services to local governments.

A smaller number of governors, generally Democrats, are presenting budgets with tax increases as well as spending cuts.

New Connecticut Gov. Dannel P. Malloy, a Democrat, is expected to propose on Wednesday raising state income- and sales-tax rates. California Gov. Jerry Brown, also a Democrat, wants voters to extend temporary increases in state income and sales taxes, and in vehicle-license fees.

Mr. Dayton's proposed income-tax increases were projected to bring Minnesota about $2.8 billion of new revenue.

He campaigned on a pledge to raise income taxes for the wealthy. On Tuesday, he said his proposal would increase taxes for 5.5% of taxpayers. About one-third of the state tax increases would be offset by lower federal income taxes, he said.

Matt Massman, assistant commissioner of the department of revenue, said the bottom 90% of Minnesota taxpayers pay an average of 12.3% of their income in state and local taxes, while the top 1% pay only 8.1%. Under the governor's proposal, all taxpayers would contribute roughly the same portion of their income, Mr. Massman said.

"This is about restoring tax fairness in Minnesota, and I'm asking our most affluent citizens to help us out during this time," Mr. Dayton said during a news conference.

"Entrepreneurs don't share that notion of fairness," said Mike Hickey, a lobbyist for the National Federation of Independent Business. "This is making Minnesota as unappealing as you possibly can make it."

Mr. Dayton proposed cutting $950 million in planned spending, in areas such as health care and higher education, while increasing spending on K-12 education.

http://online.wsj.com/article/SB10001424052748703312904576146582278553472.html
 

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That proposal, along with the personal liability insurance requirement would be enough to make me move out of that state...... oh and Al Franken too. :laughing:
 

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Yup. And a goodly portion of those 'top tier' earners took out a full page ad in one of the local rags asking for their taxes to be raised. Serious.

I don't mind raising taxes on the top income earners, but not businesses. Consumers pay for that.
 

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Yup. And a goodly portion of those 'top tier' earners took out a full page ad in one of the local rags asking for their taxes to be raised. Serious.

I don't mind raising taxes on the top income earners, but not businesses. Consumers pay for that.
Keep that mindset. It's easy to move out of state. Please give all of those entrepreneurs and job makers the directions to Texas on their way out. We celebrate their hard work, sacrifice and vision.
 

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Like California

They need to continue their ludicrous spending,

And include themselve's, And State employees another cost of living Raise.

A
Maybe few more paid Holidays, Some more State vehicles to drive to and from work ,

Better medical and dental plans, A Nice plush retirement package, A few days paid sick leave

The list goes on and on

Living on the Taxpayer TIT pays better than a good college education these days,


NEVER MIND THESE PEOPLE PRODUCE ABSOLUTELY NOTHING !!! Or make the economy stronger and more prosperous $$$$$$

Just gimme Gimme Gimme, Because I'm on the Tax payer TIT:nuts:
 

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The idea being floated around is to have a shut-off valve on those increases. However, I seriously doubt that the state will ever meet the conditions of that shut-off. Much like the rules for the fed income tax is that we must be in a state of war, or something.
 
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