Here's the Senate DFL tax plan- announced today:
The Senate’s income tax proposal would raise almost $2.2 billion over the next two years. The changes would expire in 2014.
Yeah- RIGHT they're going to expire in 2014- don't you love the Dems- Republicans pass tax cuts that expire and they pass tax hikes that expire-- they think they're going to fool people "well I guess we won't move, we can deal with it for four years"
The proposal would boost the three existing income tax brackets, while creating a fourth bracket for households earning more than $250,000.
The amount is virtually everything Senate DFLers aim to raise in new taxes.
The House’s DFL proposal, which would raise $1.5 billion, would erase most income tax deductions and raise taxes on cigarettes and alcohol.
Both plans include a new top income tax bracket, but the details differ.
The Senate tax bill would raise the lowest rate, 5.35 percent, to 6 percent on income of up to $31,860 for married couples filing jointly. The middle rate would rise from 7.05 percent to 7.7 percent on income between $31,860 and $126,580. The current top rate would climb from 7.85 percent to 8.5 percent on income of $126,850 to $250,000.
So much for only raising taxes on "the rich" -- $31,860 is rich for a married couple!
The new fourth-tier rate of 9.25 percent would apply to incomes starting at $250,000 for married couples, $141,250 for single taxpayers and $212,500 for single heads of household.
The House bill would raise $467 million from a new 9 percent top rate on incomes starting at $300,000 for married filers or $169,700 for single taxpayers.
Yippee! 9.25%- even better than the 9% over $300,000 that the House passed. Because Minnesota is as appealing to live in as New York City and California....
The Republicans should punch back and immediately issue a press release outlining how much money the state would save by:
1. Cutting the maximum time you can spend on welfare from 5 years to 12 months
2. Maximizing/Equalizing all state payments to K-12 to $7,500 per student
3. Cutting all state employees' salaries by 5%
4. Cutting ANY proposal in the budget the equates to one dime of new spending (that includes items in the Governor's budget which increased K-12 spending and Higher Education grants)
A very simple- clear-cut bulleted list that Minnesotans could see and debate publicly. Most people probably don't even know that people can sit on welfare that long, that we spend more than private schools do per pupil, that state employees get raises almost every year and never have to take pay cuts, that that there is new spending in this budget bill.
And to think that THIS is a budget proposal that includes a federal bailout.