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MN Gov. Dayton Critical Of GOP Tax Cuts

March 14, 2011, 1:13 PM

ST. PAUL, MN - Minnesota House Republicans have outlined a series of income tax cuts, which Democratic Gov. Mark Dayton says would disproportionately benefit top earners.

The House plan would lower two of Minnesota's three tax rates by a faction of a percent each, phasing the reductions in over three years. Because those in the top tax bracket pay a portion of their taxes based on the lower two rates, they would see tax breaks, too.

A Revenue Department analysis suggests the average filer would see a tax cut of $64 in the first year. But those with incomes above $100,000 would see burdens fall by $100 to $200. That's consistent with an analysis by House researchers.

Dayton says any tax cut would require additional state spending cuts because of Minnesota's $5 billion deficit.

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