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MN House Unveils Tax Plan (Audio)

Tuesday, April 16th, 2013 at 7:59 am

Minnesota House Democrats are aiming for an extra $2.5 billion in revenue by raising taxes on people with high incomes, those who smoke and those who drink alcohol.

A tax package released Monday boosts those taxes to balance the budget, cut property taxes and increase school aid.

Including a temporary surcharge on top earners, Minnesota would carry the nation’s third highest tax rate.

The plan differs in some ways from that of Gov. Mark Dayton’s income tax push, but has similarities.

The AP reports that under the proposed House bill, smokers would pay $1.60 more per pack and drinkers would see their tab rise seven cents a beer, 47 cents per bottle of wine and $1.58 on each bottle of liquor.

A yet-finished Senate tax plan would expand the sales tax to some consumer services and clothing. That isn’t in the House plan.

Democratic Speaker of the House Paul Thissen commented.

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