Massive Minnesota Tax Increase Proposed

The Star Tribune reports:

Senate DFLers are working on a nearly $1 billion income tax increase proposal that could wind up boosting most Minnesotans' income taxes to pay primarily for education spending.

Senate Taxes Chairman Tom Bakk, DFL-Cook, said Wednesday that the caucus was "about evenly split" between two income tax plans and was supposed to make a choice today, with a final vote by the full Senate due as early as Saturday as part of an education funding bill.

One of the proposals being considered would raise income tax rates across the board to 1999 levels, essentially wiping out the 2000 reductions, and would create a fourth tier for the wealthiest Minnesotans. The second plan would simply add a fourth tax rate that could go as high as 10 percent, Bakk said. That would give Minnesota the highest income tax rate in the nation.

Some people make money off tax increases.