Dayton Would Devote Half Of Surplus To Tax Breaks
ST. PAUL, Minn. (AP) — Gov. Mark Dayton is proposing to use half of Minnesota’s projected $1.2 billion surplus to cut taxes, with another big chunk going to fill reserve accounts.
Dayton outlined his supplemental budget plan Thursday, the day the House was planning to vote on a slightly smaller tax bill.
Dayton’s proposal would extend $300 million in tax deductions and exemptions available at the federal level to state income tax filers. The most significant, a change to the standard deduction for married couples, wouldn’t take hold until next year. Another $230 million would compensate for the repeal of new business taxes.
Dayton also recommends upping the state reserve by $455 million.
The remaining $162 million could go to new spending lawmakers classify as essential.
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