ST. PAUL, Minn. (AP) — Gov. Mark Dayton looked to the wealthy to erase about half of a $6.2 billion budget deficit on Tuesday, proposing a new top tax bracket and an income surtax that together would give Minnesota the nation’s highest income tax rate.

The Democratic governor’s plan would raise nearly $2.9 billion from the top 5 percent of taxpayers, including a new property tax on homes valued at more than $1 million.

It would also increase taxes on health care providers and corporations with foreign operations, while cutting almost $1 billion in spending for programs including MinnesotaCare health care and nursing homes.

The tax increases and spending cuts are contained in Dayton’s proposal for a two-year, $37 billion budget that guides more money into education but could also cost about 800 state workers their jobs.

“This is a very tough budget for very hard economic times,” Dayton said.

Dayton said his proposal would shield 95 percent of state taxpayers from tax increases, while making the top earners pay a proportionate share of income in state and local taxes. The plan would restore recent levels of state aid to cities and counties, which Dayton said would help stave off local property tax increases.

Top Republican lawmakers gave the new income taxes zero chance of passing the GOP-controlled Legislature.

“I don’t want to say it’s dead on arrival. I don’t think it has much of a heartbeat,” said Deputy Senate Majority Leader Geoff Michel, R-Edina.

House Speaker Kurt Zellers said he was taken aback by the “epic” size of the tax hike for those with six-figure incomes. He said Dayton’s permanent and temporary increases would shoot Minnesota past Hawaii and Oregon for a dubious distinction for the highest tax rate, causing business leaders and others to flinch.

“This is a feeble and pathetic attempt at going back in time to raise taxes and increase spending in order to balance the budget,” said Zellers, R-Maple Grove. “It has not worked. It will not work.”

Democratic legislative leaders praised Dayton’s approach but wouldn’t commit to voting for the tax increases.

Senate Minority Leader Tom Bakk said the governor’s budget delivers on the blueprint he sketched during the campaign.

“Anybody that’s outraged wasn’t listening to Governor Dayton on the campaign trail. And he did win,” said Bakk, DFL-Cook. “Well-to-do Minnesotans have been getting a really, really good deal.”

Dayton campaigned on raising income taxes on the wealthy. His tax plan would impose a new fourth bracket of 10.95 percent for single filers making $85,000 and up in taxable income and couples who make more than $150,000. It tacks another 3 percent surtax on people with $500,000 or more in taxable income for the next three years, going beyond what he talked about as a candidate last year.

Assistant Revenue Commissioner Matt Massman said the tax increases would be partially blunted by federal tax reductions approved in December. Someone at the bottom end of the new tax bracket could expect to pay $139 more per year in state income tax while a couple with $1 million in taxable income could expect a $37,000 hit, according to his calculations.

The conservative Tax Foundation ranks Minnesota and New York as tied for the country’s eighth-highest tax income rate currently. Minnesota’s current top tax rate of 7.85 percent applies to taxable incomes starting at $75,000 for individuals and $132,000 for couples.

In all, Dayton would cancel $950 million in planned spending.

He would eliminate MinnesotaCare health coverage for 7,200 adults, including some parents, whose incomes are at least twice the federal poverty guidelines, or $44,000 for a family of four. MinnesotaCare is a state-subsidized health care plan for the working poor, who pay premiums on a sliding scale and get less generous benefits than those on federal health care programs.

Nursing home reimbursement rates would be cut 2 percent. Long-term care providers who work in homes and community-based services would have their reimbursements cut 4.5 percent.

For schools, the plan wouldn’t immediately repay $1.4 billion in aid that was delayed as part of last year’s budget fix. Dayton said he aims to begin paying that money back in the budget cycle that starts roughly three years from now.

But the governor would raise general fund spending on education to $14.2 billion, a slight bump. That’s about 38 percent of the state’s entire spending. Dayton’s budget also directs money to optional all-day kindergarten for poor students. It would set up a rating system to help parents make informed decisions about early childhood education providers.

State agencies would have to cut up to 10 percent of their budgets, with military and veteran programs exempt. And the state work force would shrink by 6 percent.

Dayton said he tried to aim his spending cuts at the least vulnerable people.

“I’m not willing to make barbaric cuts in the essential services that affect people’s lives,” Dayton said.

Republicans who took over the Legislature this year aim to hold spending to $32 billion, the amount of taxes the state is due to collect. Dayton’s proposal puts the sides $5 billion apart even before they get into the details of how much to spend on specific programs.

Dayton and top legislative Republicans both planned to fly around Minnesota talking about the budget Wednesday. Their travel plans, like their budgeting philosophies, were not scheduled to intersect.

Gov. Mark Dayton Delivers Budget Proposal (PDF)

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (121)
  1. middle of the road says:

    Ok, here is a start of doing the right thing. We need to cut some spending and raise some taxes and get this thing balanced for once. No more fee increases, and shifts. If Dayton proposes shifts, that is not right. If the Republicans do not go for some increased taxes, that is not right. We do need a balanced solution!!!!!

    1. Really? says:

      You dems only know 1 thing!!! Tax and spend!! Pull your head out of your arse and get a clue!!!

  2. vj in mn says:

    I agree. Property tax increases these last 8 years have been ridiculous! Thank you, Gov. Dayton, for recognizing that the average citizen cannot continue to shoulder these regressive taxes.

    1. Speaknup says:

      What makes you think property tax is going to go down? Dreamer!

  3. Sam I am. says:

    BS – the state needs to live within its means. Cut cut cut, anything and everything should be on table – especially welfare.

    1. iconoclast says:

      yeah, yeah, we have heard that song before. It’s old and tired and it does not work. Cuts and increased taxes for the wealthy is the way to go. 50/50 compromise.

      1. johnmpls says:

        It’s NOT a 50/50. There is no limit on how much spending can be increased, but there is a limit on how much more can be taxed.

        Easy solution: State the tax rates that will be in place for the next 10 years, then live within that budget.

        I defy you to tell me how much more tax should be paid (of course, all the taxes will be paid by those making more than you, right?)

      2. Really? says:

        Can the dems come up with anything else? No!! They’re 1 trick ponies!!

    2. dphilips says:

      Thats right Sam, You have yours,so to hell with the needy!

      1. Sa I am says:

        No I don’t have mine. I live pay check to pay check. Did you hear me. PAYCHECK to PAYCHECK. My electric is behind, but I am paying my own way. Not reproducing kid after kid to stay on welfare year after year. Its there for the ones who need a helping hand, not for the leeches who bleed it dry year after year.

        Let me guess, 6 kids, 4 different Dads, double wide in the northern suburbs. You take your EBT card to get pizza at Papa Murphys.

        Yep just what I thought.

        At least I can say I earned mine.

      2. E M says:

        @Sam I am: Really? Those services you despise can help you. You obviously see yourself as hard working and honest. The system was designed FOR YOU, not those that abuse it.

        Then again your White Pride won’t let you admit you need help huh? Or is it more you fear looking like a black person when you pull your EBT out to get some food?

        Admit it, you’re a closet racist.

      3. 10.95% = veto says:

        E M: You are what is defined as a mental midget. Put the crack pipe down, go to the free clinic and get some condoms to prevent your seed from causing any further drain on our society. It’s always the race card when you have a limited mental capacity.. I’m sure your parents are proud.

      4. Really? says:

        @E M- Where was race mentioned? Until you did it!!

  4. I've Cutback says:

    I have cutten my person budget these last three years. I started out having lunch out everyday. As the economy tightened and I had to take a lower paying job I started bringing lunch in. At first when I had some savings I was bringing in ham sandwhiches and potato chips, maybe even some fresh fruit. After that Job vanished I needed to take an even lower paying job. Now pretty much all I buy for lunch is Ramon Noodles and microwavable Mac & Cheese. I realize the income is not there and I need to live withen my budget. When will the government learn to live within thier budget. I could go on and with my example.

    I think we should cut the budget even more. Starting with wasting money on light rail and all day childcare I mean Kindergarten. Lets completely drop 30% of all government programs.

  5. Papa K says:

    I am for changing the tax rates … makes good sense rather than shifting the burden to local cities and counties. By not raising property taxes we will avoid further problems in foreclosures and provide a fair way to provide revenue to the state.

    Equitable income tax rates and a balanced approach to spending cuts. I hope they can negotiate a budget bill we all can live with.

  6. We the people says:

    Rob a grocery store if you can’t work to feed your family.
    Rob a bank if you can’t pay your bills.
    Steal from the rich and give to the poor.
    What do Bernie Madoff, Tom Petters, and Mark Dayton have in common?
    Nearly everything… except only two are in jail.

    The good news is that the govenor doesn’t write laws or define budgets, he only provides suggestions to the legislature of what he would like to see. So now it is up to them to have an honest moral compass.

    43.6% of the vote is not a “mandate” from the majority of the citizens of MN to pillage the hard working risk takers.

    1. Jackie says:

      It sure wasn’t a mandate to pillage the most vulnerable and poverty-stricken populations either. People who work at low-paying jobs are honest workers and lots of ignorant people think all you have to have is a job and all will be well. Too many have low-paying jobs that don’t provide insurance and now many of these hard-working people may be cut off of MN Care. So I guess for some, the message is – working hard isn’t enough – you have to make enough money to be privileged enough to have any benefits. How do you sleep at night? Clearly you are a person who actually has to walk in other shoes to understand the issues….and I hope some day you have to.

      1. Ginger Shepla says:

        Jackie, many of us do walk or have walked in those shoes. That’s what pushed up onto to better ourselves. Hard work is not easy, that’s why it’s called hard work. So if you want something more for yourself, make it happen, don’t be so dependent on everyone else to take care of you.

      2. We the people says:

        I work 3 jobs and live paycheck to paycheck to keep my family fed and clothed.
        But the bottom line is still “Stealing is Stealing”, it can’t be called “Fair”.
        God even listed it in his top 10 sins. Thou shalt not steal.

      3. Michele says:


        Obviously you have never worked a “poor man’s job” and must be making over 150K other wise you would not have said to work harder. Next time you go to McDonalds, or your favorite restaurant make sure you tip that “poor working man/woman” because they are not making anything worth living on!

      4. johnmpls says:

        Funny, I’ve never worked for a company where the owner made less than $150K.

        Hopefully people making $50-75K will now be hiring people for good paying jobs.

      5. dphilips says:

        Well said Jackie!

      6. E M says:

        Yeah Cutting off MN Care before the 2014 Obamacare mandate? Good move there… Feed the Insurance pigs to bursting…

      7. Really? says:

        How can you pillage someone who is poverty stricken? Get off the victim wagon and GO TO WORK!!!

    2. 10.95% = veto says:

      I concur and obviously, a touchy subject. What can I say? I am already tired of paying for everyone else, now an increase to 10.95%?? Madness… Why is it that the biggest soapboxers are those that stand to reap the largest benefits?

      I’m interested to see if there will be any further corporate tax restructuring. With the Twin Cities being the 15th largest agglomeration in the US and hosting 21 of the Fortune 500 companies. What revenues do these firms bring in? Over 423.3 Billion in 2010. An increase of 100 basis points on their tax sheet could bring 4.23 Billion to the state, but we all know that will never happen.

    3. Ignorance must be bliss says:

      You are an absolute moron if you think Bernie Madoff, Tom Petters, and Mark Dayton have anything to do with each other. Love how people do not even share the belief that they have but just spew BS hate out. I keep hearing from the GOPers to deal with all the repubs in office right now as the people voted them in, well take your own words to heart and STFU already with “how bad” Dayton is, the people voted him in too so find something else to cry about already.

  7. PoBoy says:

    I want everything provided for me free of charge. I want education, healthcare, smooth roads, mass transit, sports teams with new stadiums, utility services, food, etc… You get the idea. I just have to get a little bit poorer and it will all be free. Let those working suckers pay for it, or better yet, let’s just borrow the money so no one pays for it.

  8. rmsmkm says:

    I wonder if he is going to be paying the higher tax on the money that he and his family have in the Dakota’s , that would also help balance the budget.

    1. Ignorance must be bliss says:

      Why would anyone pay MN for income that they have in either of the Dakota’s? Is this really all you have to complain about? I guess the better question is, is this even a question or just spewing more sh!t?

    2. Really? says:

      Dayton does squirrel away his money and he’s been caught. The dem voters are so stupid, it’s laughable!!!

  9. Speaknup says:

    Dayton shouldn’t be increasing spending on anything. Fifty years ago there wasn’t any such thing as “early childhood education” and kids turned out just fine. Poor doesn’t mean stupid. Any parent ought to be able to teach his/her child up through pre-K what their kids need to know to make it in Kindergarten without state aid.

  10. Jay says:

    One area the government could pursue is to stay out of business. Like paying for stadiums for example. Only those citizens that can actually pay for some portion of a stadium should do so…as a choice. But, this is only one example. I guess I’m just tired of potilicians that don’t attend to the needs of their constituants statewide. If they really cared would they commit all the citizens to these huge long-time sums?!

  11. Karen says:

    I would like to see a total freeze on hiring state workers, and reduce by at least 10% through retirements, We should also look closely at functions that could be done in the private sector saving the state long term obligations in retirement benefits.

  12. Kevin says:

    So….increase taxes on the rich…..then increase spending on Education (union)? Not cool…..Then remove the poor from MN Care….not cool…..then slap the elderly and cut their money……not cool….but then give free Kindergarten to the poor (union)….So I guess if your in a Union your recession is over….if your rich your about to become less rich…if your poor and have MN Care your about to get kicked….and if your old your about to get kicked…..I got a better idea…someone kick Dayton!!!! We need cuts across the board! No more immigrants! Cut school spending! Cut govt waste! This guy is unreal!

  13. I care about our children says:

    All day childcare??? All day every day Kindergarten should be a given across the board! Look at WI, not only do they have that… they also have 4 year old K in many districts. MN needs to make Kindergarten a priority and not only an “option.” I personally am not asking for help with Early Education and I would never qualify for help with Kindergarten. So, unfortunately my children don’t go every day. BUT this shouldn’t even be something parents worry about… schools need funding and it should start with getting our Kindergarten students in the classroom.

    1. Eric says:

      A childs success in school comes from the involvement of the parents. We could double the amount spent on education in the state and it would not make a difference in results. The education industry has been duping us into believing it’s for the children rather than for their own pockets. Wake up, early childhood education will only succeed if we figure out how to make parents accountable for raising their children. The ones getting punished in this are the people who take pride in getting their children prepared for school, are involved from k-12 and beyond, but are forced to pay for the parents who could care less.

    2. TS says:

      Why can’t you teach your own children the basics? I think you’re just looking for cheaper daycare.

  14. jon says:

    All I am going to say is taxes need to be raised to fix the mess we are in.

    1. thesuperman says:

      The mess were in is caused by the irresponsible idiots running this state. When the 35 w bridge was rebuilt. The contract went to a Colorado company. And it was the most expensive bid. Government never does anything the correct way.

    2. Kevin says:

      Oh my…you are the Democratic Party’s wet dream……can you breed more of you?

  15. cache says:

    Clown, mental midgit, dummer than dirt, puppet, thief…if one can’t live within ones means go steal from the taxpayers (golden geese). This State is descending into Hades with our arrogant insipid governor driving the green bus…I can’t seem to call this ‘thing’ enough names which only falls on deaf ears, blind eyes and the dumb. It seems NO One is paying attention or cares how bad it gets as long s they get their freebies. We are over run by overbreeding illegals and welfare slugs and those corporate rats who get freebies from us taxpayers!

    1. thesuperman says:

      Exactly. You should be Governor

      1. John says:

        You would get my Vote!!!!

  16. Iconoclast says:

    The corporate patsies that call themselves the Republicans want you to forget that the wealthiest people in the country use to pay TWICE as much in taxes 50-60 years ago. That’s TWICE as much in case you were not listening. It’s called progressive taxation and it works. Nobody, least of all, middle class folks, should be defending the whining and straw men put forward by the Republicans over what certainly would be only a modest increase in taxes on the wealthy.

    1. Eric says:

      I’ve seen the rates you refer to and the democrats love to use them for their talking points. Theres a little thing they leave out, the rates do not take into account deductions. Duductions were quite large back then, as the tax rates lowered, concessions were made on the amount of deductions possible, which decrease every year. Tax rates then, were the same as they are today, we just have a larger government and less income earning citizens to pay for it. You think the Rockerfellers and Kennedys of the world were getting that rich with an 80% tax rate.

    2. thesuperman says:

      Your an idiot. What did mark Dayton do but, set up a trust fund in South Dakota. Why? To avoid taxes. Taxation does not work. It only deadens creativity and ambition. The same with regulation.

    3. Gary B. says:

      Iconoclast, you are spot on.

  17. Lisa Gonyea says:

    Early childhood education …not needed. There are numerous studies that prove children with headstart were not any furher along by the time they reached 2nd grade. All we are is providing childcare for many who are not in need of it anyway. Just a chance to get the kids out of their hair for a few hours every day. What is Gov dayton callin wealthy? A combined income of 200K? Usually achived at the time when their kids are off to college and not able to get assistance like lower income scaled families. That’s is OK..the last bastion of PC groups to hate..the so called rich!

  18. Michele says:

    What the hell is Dayton doing?!! Cutting Home Health, Nursing Home Care, and Mn Care for the working poor is stupid and irresponsible!! Yes Mn should have all day Kindergarden, this is a no brainer, but there are school programs that should be cut…arts, choir, spots (if they want sports join a community league!) We already know we are going to pay higher for clothers so tax it already almost every state in the union does. Again the government is not listening, Dayton is a one term Governer..what a mistake voting him in!!

  19. Patrick says:

    What the Republicans want you to forget is that the wealthiest people in the country use to pay TWICE as much in taxes 50-60 years ago. That’s TWICE as much in case you didn’t get it the first time. It’s called progressive taxation and it works. Nobody, least of all, middle class folks should be buying into the whining and straw men put forth by the Republicans. They spend as much as anyone but use tricks to put the payments off for the next person.

  20. Alastair says:

    Legalize marijuana. Tax the living bejezus out of it. Regulate it. Tax clothing. Decrease welfare funding. Viola!

  21. John Coulter says:

    Our Governor is nuts if he thinks the people of Minnesota are going to put up with higher taxes and more spending on programs that only encourage people not to work and drive businesses out of state. Needed changes are coming to America and Minnesota. IT IS AN EXCITING TIME TO BE ALIVE as politics heat up and we return to Americans taking personal responsibility for themselves! Who is responsible for me? I AM!!! Not my government!

  22. Paul says:

    Are the poeple who are commenting against this making more than 132,000? If so, then you have a right to complain, but if not that seems crazy to me!

    1. We the people says:

      Mob rule… parable…

      Suppose you’re hanging out with your buddies, and Joe says “hey lets go steal from that store”…
      You say “no that’s stealing”..
      Joe says “What??? Do you own the store? I’m not stealing from you. It’s unfair that the store has all that stuff that we don’t have. So we are just evening things out”.
      You say, “Oh… I get it… sure let’s go do it. Better still… let’s get our big brother Dayton to do it, because he is above the law”

      I think we understand exactly what you are saying.

  23. Paula says:

    Today is a good day for poor Minnesotans! Their taxes won’t go up, the rest of suckers will have to pay! Oh happy day!!

  24. Michele says:

    Why not just institute a death committe! Everyone who is in nursing homes, done. Home health care, done. Working poor, done. There is no reason that all day kindergarden “needs to be funded” just do it! Why pump money it the education system that is not broke, and just where the hell are the jobs? You people want to decrease welfare then create jobs…Look back to the past, get people picking up trash, cleaning around the river’s, parks, you have to create jobs to get more income into the state. There is no reason why companies can not step up and start hiring people give them a tax break in 2 or 3 years for hiring people to just clean up the state!!!!!!

  25. don says:

    Punishing people for being successful. Now that makes a lot of sense.

  26. Mr T says:

    Start laying off public workers today. End the financial support for illegal immigrants. There the budget is fixed

  27. MAJ says:

    How many of you complainers voted for Mark Dayton. You should have known he is a complete loser. He has no concept of $$$$ as he was born with a silver spoon in his mouth, only went to private schools and married a Rockafeller. He has never had to worry about his own money and now you think he knows how to deal with the state of Minnesota’s finances.

  28. chad says:

    What is a fair tax increase? To me if a person makes 1 million they do not necessarily use more government services. So why is it fair that they pay so much more in taxes than a $20000/yr member of society. Actually, the $20000 member uses many more services. The deficit for the next 2 years would require about $1100 over the 2 year period for every man, women and child.

    So, lets all decide do we each pay that $1100 extra or do we cut that amount out of the budget.

    my vote cut!!!!!!!

  29. JKB says:

    Speaknup: my property tax has gone down the last 3 years. Of course so has the value so I can’t refince to a lower mortgage rate since I now owe 50K more than the value of the house.

  30. Bob says:

    Quit paying for welfare, and get a Racino!!! This will solve everything , and well were at it get rid of the government slugs! You state employed sure are lucky . You shoul all thank your lucky stars.

  31. Tom says:

    I like Daytons balanced approach. It is something different finally after the last few budgets where is no big surprises because Conservatives like throwing out the same ideas year after year. It’s like they are afraid too think outside the bubble they live in. As noted by a few conservatives on this page they say keep cutting, cutting, cutting, well it seems like we have been doing that the last few years and the budget deficits keep getting bigger. Lightrail is not a waste of money like some have mentioned if that was the case then the lightrail from Downtown, Mpls to MOA would have been a complete failure years ago. While it is true that the Northstar has not taken off like the lightrail has somethings take time. But as most conservatives think that if it is not a success after a month it needs to go. I wonder if the conservative would say those who are investing high speed rails over seas are waisting their money? With transportation you have countries who are not afraid of investing in those things where as the conservatives in this state and country are afraid too move forward and want too keep things the status quo. It will get too a point where everybosy else will be so far ahead of us in everything and we will looking at them from the rear with us still sitting here with our thumb up our butts. All day Kindergarten is a good idea we can either move forward with kindergarten and all education or we can choose to sit there wilth our thumb up our butts with that one too. It just seems that the conservatives wanted the job but they dont want too make the tough decisions. They are more concerned about being popular if that was the case they should have choosen a different career. They have too learn that not every decision they make will be a popular one.

    1. Cochr002 says:

      Slight correction to your numbers:
      Passanger fares-9.3 million
      State/county support 14 million
      Net income .7million
      Ridership 9.9 million
      Fare per passenger 94cents
      Support per passenger 1.41dollars
      Thus the cost is far more than the passenger pays.
      So is the Hiawatha Line profitable? No. Waste of money? Depends on if you ask the rider or the person paying for 60% of the cost of the ride.

  32. Michele says:

    What a shame that most of these post’s are hitting at cutting at the poorest of Minnesota. Yes the illegals should be cut off from services, but how can you close your eyes to the fact that there are mentally challenged people working Part-time, paying taxes, but still getting their benefits cut ie: MN Care and NO not all of them are on Medicare so now what happens, they go to the emergency rooms for treatment because they can’t pay the Dr bill and they can’t pay the emergency room bill either. Most of you people have no idea the kind of hardship that you are now going to be forcing on the poorest because you won’t suck it up and pay more taxes on clothes, smokes, booze, park fees, tab fees, state income taxes. Until you are a direct care giver to someone with a true disability, you will never know the hardships they face. So suck it up people with higher incomes pay the damn taxes. Dayton: We suggest you give back to the State of MN your paycheck you don’t need it, thanks for stealing from us. I bet most of you people forgot that didn’t you! No I did not vote for this incompetent Jerk!

    1. We the people says:

      I’m in full agreement with you that mentally and physically challenged, and even some medical coverage for those with true inabilities should be assisted by “we the people”.

      As for your attitude of sticking a gun in the ribs of those with more money and saying, This is a “suck up”… your money or your business. I know that is just plain wrong.

      IF enough money cannot be cut from entitlements to the truly lazy, then I would fully support an increase in the sales taxes. Those that can afford expensive toys would pay plenty of taxes, and those buying necessities would pay very little.

      Please search the internet for H.R. 25 Fair Tax Act and study it.
      If we could implement that, so much of the headache, expense, and policing of taxes would be eliminated, while still funding the security and social needs of our nation.

      1. Michele says:

        Just were is “sticking a gun”? Did I single you out? No. I should have said “WE ALL NEED TO SUCK IT UP AND PAY THE TAXES ON BOOZE, SMOKES, TABS, FEE’S, CLOTHING, STATE INCOME TAX .Hell it would be easier to just put a flat tax across the board on all of this to get MN healthy again..Let’s say 12%? We already pay 7.75 so a few percentages more why not?! Then it hits everyone, wealthy, middle, poor. No Dayton didn’t put us here Pawlenty did as did greed by the people we elected. It seems here NO ONE is willing to put forth the effort to pay what must be paid. WE NEED JOBS TO PUT MORE PEOPLE BACK TO WORK AND PAYING TAXES!! Has anyone bothered to see that there are less and less workers to pay for the “baby boom” generation? Which also means less taxes to collect. What happens when Generation X get’s older, they will be screaming that there are not enough workers to pay for their benefits. I’m a realist not liberal or conserative.

      2. We the people says:

        Good job Michele… thanks for clarifying.

      3. Michele says:

        We the people…Thanks!!

        I hope you don’t have to work 3 jobs forever, sounds like you are paying more than your fair share and working hard to keep a roof over your family’s head.

        So people here’s another example of someone working multiple jobs why isn’t there a Full-time job out there for him?! Again I ask WHERE ARE THE JOBS?!! WHY ARE WE NOT CREATING THEM?!!!!

  33. lib says:

    If the rich have to pay more, just because they earn more, they should get a few perks, like being able to use the HOV lane for free after all they pay more for it, free seats at the stadium they are paying more for, free access to all parks, after all they are paying more for all of these things. They shouldn’t have to pay for parking when they want to get to a govt building after all they have paid more for the government workers salary.

  34. JKB says:

    I know longer have kids in school but think all day kindergarten AND pre-school are important for the child(ren) to learn social skills. It’s great for them to interact with kids of other social/racial backgrounds to learn about each other. This can teach them tolerance of others and learn from each other. It’s great for them to learn of other cultures even if they are young and just play.

  35. concerned in mn says:

    If cities and couties have to bear the brunt of lga getting cut taxes will go up, but with home values diminishing no extra taxes coming in. Do the math

  36. Harold says:

    NO new taxes for anyone…………….If you don’t get it we will find someone that does.

  37. John Sherman says:

    once again the democrates expose themselves that taxes are the only way they never go away its a growth industry the only one for them the people who are resposible for it never admit they are the cause for debt just the republicans are watch the destruction of this state. If you want to cut the def take a good look at the rat hole of education ” its for the children” no its for the teachers union let them really tell where the money goes over the YEARS what has been the return on this INVESTMENT no tax because you dont see in improve student performance.

  38. Judy says:

    I don’t see why everyone in blamiming Dayton when Pawlenty put us in this problem in the first place. He did not raise taxes, He just put fees on everything. With Dayton being HONEST and calling it taxes now everyone has their panties in a bunchl. I am disabled and no raises for me in the last 2 years but everything else has gone up. Get the illegals and non residents off the welfare roll and help our own residents of 2 years or more. Do not let them come into the state and go on welfare or Social Security andy more. Make them work to draw S.S. Like the rest of us did. Alos paid lots of taxes like I was suppose to do.

    1. concerned in mn says:

      He was more concened with his political future than the future of Minnesota

  39. M says:

    Balancing the budget is what we need to do. So this part of what Dayton is saying is reasonable.
    We also need to stop spending on projects that are welfare for the rich and/or just “nice things we would like, but we want someone else to pay for”.

    The “economic development” amenity….slower than buses, lite-rail….$1+Billion
    The “economic development” amenity…St. Paul station….$250,000,000
    Wilf’s Welfare Statium….$1 Billion
    Wolf’s Welfare Stadium enhancement…$100M+
    79mph speeeedy rail….millions just to “plan”, Billions to build …and why??
    The “economic development” amenity….St.Paul “Pond”…$40M
    The “economic development” amenities…various towns’ convention centers..$M

    If the plan says it’s for “economic development” there is a 80% chance it is welfare for the rich and should not be built.

    The “economic

  40. Jonathan says:

    I can proudly say that I voted for Horner!.. However, I think this budget balancing plan is the best one I’ve seen and certianly the only complete one we’ve seen.

    I still have my doubts about Dayton, and his competence to pick his own nose, but I’m impress with his solution for the deficit.

    1. Michele says:

      On the backs of the very poorest no doubt. You must be very wealthy

  41. bigcatmatt says:

    stop spending more on education,i can see by the spelling in here,it’s not working.

  42. Charlie says:

    The reality of the situation is that the money has to come from somewhere, and in the end no one is going to be 100% happy with the method chosen to obtain it. I voted for Dayton, but that doesn’t mean I agree with everything he’s trying to do.

    For example, I believe that, as Michele stated several posts ago, cutting MN Care is wrong in every way. Like she said, these people really do need the help. If they don’t get help, they are forced to go to the emergency room every time they need medical care, and they can’t pay the bill for it, but SOMEONE has to…you guessed it…it eventually falls on our shoulders.

    If you cut the early education programs, then you force more parents back to working part-time or not at all, thus generating less tax revenue for the state, thus precipitating the cycle. On the other hand, the all-day programs seem to confuse many parents into thinking they can leave the teachers to handle everything (including manners and discipline), which is certainly untrue.

    If you’re wealthy, you probably did work hard to get to where you are. But it’s clear from some posts that money hardens people’s hearts. Poor people are often some of the hardest-working people out there. Many have two or even three jobs. While you sit at your desk and hold meetings and try not to get your designer suit dirty, some guy is scraping half-eaten food off people’s plates in a restaurant for $8 an hour day after day, knowing he (for whatever reason) will be doing that job the rest of his life. I just think saying, “Sucks to be him” is very cruel. If you’re making ten times what he makes, I think you can afford to give some back and still have a pretty decent life. If you can’t, then you are, by definition, spoiled.

  43. jon says:

    Daytons budget sounds ok to me!Something has to be done about the welfare system in this State,I’m liberal and think it is way to generous!

    1. M says:

      again on the backs of the poorest. you would probably be the head person on the death committee.

      1. 10.95% = veto says:

        Michele – enough already. If you can afford to have internet to post worthless thoughts/ramblings/incoherant fragmented sentences, you are certainly not the poster child or soapbox committee on the poor parade. The backs of the poorest my ass, it’s on the back of my newly proposed 10.95% tax bracket that is going to line your state sponsored benefits package.

  44. dphilips says:

    You are all feeling the fallout from 8yrs of Pawlenty!!

  45. JB says:

    The problem is, it is never enough. Teachers, unions, state employees, roads, social services,…. Why is the only source of revenue being considered is taxes on the minority? Because they can not vote against it. It is as immoral to expect the few to pay for the majority of services as it is to expect the poor to actually pay some taxes and reduce their benefits. So,. the only real solution is to take up Don Laughlin on his offer to build a Casino in Downtown Minneapolis. He will create many high paying jobs during construction, he has guaranteed tax revenues to the state, and he will long term employ hundreds. So, why is this not beign considred?

  46. Frustrated says:

    How about we stop giving huge tax “refunds” to all the freeloaders that barely work, keep spitting out kids they cannot reasonably afford and do not take care of? How is it a refund when these people didn’t even come close to paying in that amount of money? I know someone who made $14,000 last year and received a $7,000 refund… that is not a refund, it is a free income or reward for not working as hard as the rest of us. I’m tired of that garbage. I’m a single mom of 5 kids and I do not receive those types of “refunds”. Why, you might ask. It’s because I work my tail off and make too much money to qualify for the credits and and other allowances that made these people eligible. In addition, I have to wait to have my refund processed because I itemized my deductions. Way to punish the hard workers, again.

  47. kally says:

    I wonder if a bigger sales tax would work. Spend more pay more.

  48. Hewes Craft says:

    let there be a team formed from both parties with these two assignments: 1.) figure out a tax rate based on your gross income with no deductions (maybe 5%) so it does not matter what you make everyone will pay the same %. 2.) do the same with business on gross with no deductions (maybe 3%). one tax rate no matter what your business income is 10,000 or 100,000,000. The next part would be to bring to the people for a vote what government should do for the citizens or not. Each year the two tax rates would be adjusted up or down to pay for what the people decide. Then the last thing is to change to unilateral legislature so party bickering ends. the new single party would only be working for us not the darn “party”.

  49. bigcatmatt says:

    when the rich move out of this state who will pay then?

  50. lib says:

    Governor Dayton should put his actions where his socialst mouth is. Why not liquidate everything his ancestors left him? he didn’t work for any of it, that is why it is so easyfor him to tax productive people, he doesn’t have a clue what it means. let him just live off his governors pay, that should suffice for a good liberal.

    1. digger says:

      I agree, I would like to know how much that trust fund baby made by having his accounts off shore and then in S Dakota.

      1. Reagan says:

        South Dakota has one of the lowest tax rates in the USA.

  51. jimmy says:

    The problem is that the top 1% wants to take 23% of the income. They should pay 23% of the cost of Government.

  52. Jon says:

    Better to tax people who can afford an increase than on backs of the less fortunate.make it so we can get out of this mess t-paw created.a balanced attack is best to bring down deficit, while were at it let’s cut health care for all politians for two years,that should save a ton of money.also cut their pay by does that sound!!

    1. JB says:

      Sorry Jon, but you need to read a little history. You see “T-Paw” vetoed a budget brought by the democrats that would have created this mess and then the DEMOCRATS over-rode his veto. It is all there in the public record for you, me or anyone else to read. Next time, please take off your left rose colored glasses and read all the papers, the perspective from the right is not always wrong, just like the persoective from the left is not always right either.

  53. bear says:

    Parents,get off your lazy butts and don’t expect headstart or daycare providers to do your job you should be teaching your children the basic stuff, daycare is for working parents they are not their to hold your hand and teach your children everything, Thank god for providers so parents can work and get back to work to watch your gems, Have you thanked them lately …… Put credit where credit is due!!

  54. broken says:

    #1- Did this REALLY surprise anyone? Doesn’t Dayton have MOST of his money sheltered OUT OF STATE?
    #2- I have an idea….for every DOLLAR our taxes are increased, the government needs to trim TWO DOLLARS from their budget. The Three main areas, Government pay reform, tax shelters from things like Indian Casinos and new immigrants to MN, and welfare! I am not 100% against paying a little more to get out of this mess….but I REFUSE to PAY MORE THAT 33% of the bill! I have NO KIDS, and have not collected a $ from MN for anything listed above!!
    #3- I do NOT make over $130k a year…but I also dropped out of college in order to work for the Post Office! I was lured by the pay they offered me as my friends that NOW MAKE OVER $130K a year, finished college! And you know what…..THEY DESERVE that pay! Trust me, if you are making $130K a year….9 times out of 10, you WORKED for it! Now over $350K a year? There you go. Some of these TOP PAID Executives NEED to be taxes more. When they make 20-30 TIMES the “Average pay” of someone on their company, which is WAY too much!!
    #4- To all of you “T-Paw” haters….”miss me yet” should be his motto! He WARNED us of this for YEARS! He did what he could to STOP spending, but look at what he had to work with! WHERE would we be if the situation was reversed? If Dayton were Governor when T-Paw was in office….we would have been SCREWED! One word….CALIFORNIA!
    So…..thank GOD mid-term elections went how they did or we WOULD be screwed!
    CHANGE NOW!!!! It’s up to you (or US) folks!

  55. PS says:

    Really it’s NOT a TAX it’s a “USER FEE on the WEALTHY” ask pawlenty

  56. Southbound says:

    I hope that if these new taxes are enacted, it will not be until 2012. That will give me time to get out of this socialist state. I have never seen such a large number of whining drones salivating to suck all the blood out of the worker bees.

  57. Reagan says:

    I hardly believe that only 5% of Minnesota couples earn more than $150,000. I has to be a much higher percentage than that. If that is true I should be living a heII of a lot better than I am.

  58. Concerned Citizen says:

    Why is it that people think that increasing a percentage for those making more than 150,000 is somehow making these people “pay their fair share”? If people think that 10.95% is a fair tax rate, then perhaps we should implement a flat tax rate of 10.95% for all tax payers. If we switched to a flat tax rate, then everyone would be paying their fair share of taxes. Otherwise, under the current marginal tax rates or the proposed increased marginal tax rates, those making above some arbitrary income level are paying an extraordinaryly larger amount of actual dollars than those at the lower levels.

    In addition to the above issue with the notion of people paying their “fair share” is the issue of perceived wealth. People assume that if a couple makes 130,000 or even 150,000 that they roll around in money like scrooge mcduck. While this may be true of some people, the reality is far from this perception. I can tell you from personal experience that when looking strictly at income our family fits into the above 150,000 threshold and should have no problem sholdering this higher tax burden, or excuse me “our fair share”. However, by looking only at income measures, reality is overlooked. Our family is required to pay anywhere from $25,000 – $50,000 a year in student loan payments, Under the current state and federal tax systems there is no deduction or consideration for these student loan payments. Therefore, in actuality our income is more akin to two individuals making $50,000 year, not the extraordinary wealth everyone may assume.

    I would propose that if Gov. Dayton and those who think people that people above this arbitrary income threshold should “pay their fair share”, then perhaps take a step towards balancing this “fairness” penalty and allow for the deduction of student loan payments.

  59. Hewes Craft says:

    I am a servant of the state. I help return contaminated sites to productive use and a tax paying revenue string. I sleep well at night knowing that I have helped keep our beautiful state as pristine as possible for my children and others to enjoy into the future. I have worked for many years in private industry and made a lot more money for nearly the same hours over 40 a week. it comforting to no end to hear the negitivity expressed and the proposals from the republicans that my wages and retirement possibilities could be impacted by thier actions. I should wonder why I became a public servant. I also am so curious to understand what those who want to diminish goverment service will think when they want something and it’s no longer there? There has to be a thoughtfull process discussed and implemented that satisfies the citizens of the state. What services do you want and are willing to pay for as our state budget requires to be balanced?

  60. Trayce says:

    Yes, its about time for the wealthy (over $150,00 per year) should pay the same of percentage the less advantaged pay out yearly in taxes..I always thought that having a certain amount of money each year from each and every citizen would not only bring in more capital but be fair to all.. Also, we need to stop outsourcing our jobs and paying Billions of dollars to the Middle East—the rich over there have so much they will never spend it all–rich in the Middle East will never help THEIR POOR so, it really doesn’t matter…EXCEPT to USA citizens were losing our butts over here…we’re so busy taking care of the M.E. borders we’re not protecting ours like they should be…I’m not going to get on a rant but, yes, Governor Dayton raise the rich peoples taxes and give us poorer people a little break…Thank you!!

    1. 10.95% = veto says:

      Trayce: Please do not confuse a state budgeting exercise with that of a federal budgeting exercise. Discussions of aid to the middle east and boarder patrol initiatives have absolutely nothing to do with the fine state of Minnesota nor the dollars taken from me with the proposed 10.95% tax bracket. Furthermore, it will never pass anyway.

      While we are on the topic, do you really think that your proposed solution of “raise the rich peoples taxes and give us poorer people a little break” is a sound solution? Think about it, don’t you think those “rick people” would figure out a way to not pass those threshold levels? Think about it Trayce, does it really make sense to penalize those that have created a higher earning level for their families, those same people who by default, have higher spending habits that continue to move the economy forward?

      I’ll use a little math to make my point, just so it is perfectly clear. Let’s say your family income level is $33,000/yr. You would be at the 5.35% tax calculator. That means you would have contributed $1,765.50 a year to support the roads, education, police, fire, etc, etc, etc. By the same measure, let’s say my family income was $150,000/yr. At the proposed tax rate, I would have contributed $16,425, almost 10x the amount you pitched in. Do I use 10x as many resources as you do? Does it really seem like a fair trade off? Really? If you think about it, at 150K a year, my Minnesota tax rate paid for 6 months of your 33K a year salary.

      1. Aaron says:

        I think it is mostly fair to tax those that make more. You can’t take more from those that make less, that doesn’t make any sense. Those that make more SHOULD pay more because they make more. I don’t know if it was you or some other 150k+ earner that complained about paying student loans and pretending that means you only earn 100k a year but everyone else pays loans, too. By that logic if I make 50k a year and pay 12k in student loans I’m only making 38k, right?

        That’s not exactly how it works. Loans are your problem, not the state’s. If you are making 150k and living within your means a larger pay cut should not cripple you as it would a middle class family.

    2. pat says:

      Hi Trayce, the wealthy (150,00) and over already pay a considrable precentage more than those that make less. Poor people don’t pay taxes in this country, they only use all the resources.

  61. JB says:

    Wow, editting and removing anything tha tis not demonizing democrats or pro democrat. :Lets stop people form having public input that is not left or right eh?

  62. JB says:

    The problem is, it is never enough. Teachers, unions, state employees, roads, social services,…. Why is the only source of revenue being considered is taxes on the minority? Because they can not vote against it. It is as immoral to expect the few to pay for the majority of services as it is to expect the poor to actually pay some taxes and reduce their benefits. So,. the only real solution is to take up Don Laughlin on his offer to build a Casino in Downtown Minneapolis. He will create many high paying jobs during construction, he has guaranteed tax revenues to the state, and he will long term employ hundreds. So, why is this not beign considred?

  63. Harold says:

    No reason to live in this state if you are in the upper bracket. You could live in neighboring state and commute in a private jet and still save money. New York and New Jersey tried this route and both failed, the tax rev went down not up because people moved. Then what do you do? Its time to rethink what gov provides and what people are responsible for.

  64. Dave says:

    Make the rich pay… they can afford it!!!

    1. me says:

      get a job and pay yourself

  65. Pat Svacina says:

    Our state and country has become a “nanny state”. My parents taught school in the l960’s and we pretty much lived paycheck to paycheck. In the summer my dad painted houses, and my mom raised veggies to sell. People that live in Minnesota seem to feel entitled and expect the state to take care of them. Some people get reduced housing, daycare, free junkers to drive, free food, reduced or free medical benefits and free private school. The middle class whlite families are paying for their benefits. Dayton will not cut off the gravy train.!!!!!

  66. mark from says:

    Dear Gov. Dayton, Ask yourself if you ever got a job from a poor person.

  67. boother says:

    Cut the deficit. How about for all state workers making over $50k,
    take a 10% pay cut till deficit is zero?

    Checking the data planet section in pioneer press,
    it is amazing how much MN state payrode is.

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