Reporting Steve Murphy
MINNEAPOLIS (WCCO) – With ten days to go in the 2013 session, DFL legislative leaders held budget talks with Governor Mark Dayton Friday to hammer out their differences on tax and budget issues, including a Senate proposal to extend the state’s sale tax to clothing.
Although the senate bill is about $750 million less than the $2.6 billion house proposal, the cheaper Senate version includes a highly unpopular tax on clothing – something Senate Majority Leader Tom Bakk says is necessary.
NewsRadio 830 WCCO’s Chris Simon Reports
“Today at least the governor and I have an agreement that there are some things in the sales tax worth taking a look at,” Bakk said.
The clothing tax is opposed by retailers, the governor and House Speaker Paul Thissen.
“I think it’s just part of the negotiations. We try to figure out the best tax package for middle-class Minnesotans and that’ll be part of the discussion,” Thissen said.
The governor would also like to raise the higher income tax threshold from the mid-$20,000 range to $500 million. Dayton believes that anything lower than that will damage the middle class.
Whatever is worked out Friday will be sent to a House-Senate conference committee next week for a final draft.