Minnesota Lawmakers Begin Debate On Tax Cuts

ST. PAUL, Minn. (AP) — Senate Republicans are proposing to cut the state's lowest income tax rate as part of a $900 million tax cut bill.

It's Republicans' opening bid in the brewing fight over tax cuts with Democratic Gov. Mark Dayton. Tax talk will loom large as the Republican-controlled Legislature and governor start assembling a new two-year budget with a $1.65 billion budget surplus.

Senate Republicans unveiled the broad strokes of their tax bill Thursday that would phase out a Social Security income tax and provide college tuition tax credits. But top senators wouldn't say how much they want to cut the state's current 5.35 percent low tax rate.

Whatever the cut, most Minnesota residents would benefit. Even higher earners would pay a lower rate on their first $18,000 of income.

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