Tax plan may face uphill battle in Minn. Senate - FOX 35 News Orlando

Tax plan may face uphill battle in Minn. Senate

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ST. PAUL, Minn. (KMSP) -

One day after the Minnesota House of Representatives passed their tax bill, the Senate is laying out its own plan -- but it may be facing an uphill battle.

This week has seen a lot of tax talk at the state Capitol, with the House passing a bill that would create a fourth-tier income tax bracket and higher alcohol and cigarette taxes. The Senate plan has a different approach to raising revenues, but the response has been cool so far.

The Senate would like to extend sales taxes to clothing and personal services, such as hair cuts, car repair and cable TV subscriptions -- but the measure getting the most attention is the plan to raise the income tax rate for couples making more than $140,000 annually.

For couples in that income range, their tax rates would jump from 7.85 to 9.4 percent -- an increase of nearly 20 percent. On Thursday. Gov. Mark Dayton said that's not a plan he's particularly fond of.

"I stand on my budget and my tax policy," he said. "That's what I think is best for Minnesotans. I don't believe we should be increasing taxes on middle-income Minnesotans. I think they're overtaxed already -- especially compared to the very wealthiest."

The Senate plans to vote on the bill next week.

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