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St. Paul – Today Legislators received Governor Dayton’s budget proposal entailing a plan to raise taxes and calls for increased K-12 education funding. Governor Dayton also calling for a 5% reduction to most state agencies in addition to a $400 million cut to the Department of Health and Human Services.
“Governor Dayton is proposing $4.1 billion in tax increases in the midst of an economic slowdown that is showing little recovery and could reverse economic gains we’ve seen,” said Rep. Kiel. “We want to encourage business to expand in Minnesota not send them to other states with favorable business climates. This budget looks like a tractor that needs major overhaul, and the Governor just put a new tire on it.”
With Governor Dayton’s plan a 4th and 5th tier to the tax rate system would be added and the 4th tier would make us the second highest taxed state in the nation at 10.95% just shy of the highest states, Oregon and Hawaii, who are taxed at 11% each. Minnesota will be the highest taxed state in the nation at 13.95% with the 5th tier to the bracketing system.
“It sends a strong message to businesses and the hard working people of Minnesota that prosperity is fair game for increasing state government spending,” said Rep. Kiel. “We need to fund education, but we should look at where we are spending our education dollars. Are we spending too much on testing? Our schools are not one size fits all. We should look to schools to help them be successful and throwing money at them does not fix problems.”