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Dayton emphasizes school funding in his spending package.

The Democratic governor released his proposal to a packed Capitol area meeting room as the beginning of discussion for the two year budget that begins July 1.

ST. PAUL Governor Mark Dayton says taxes on average Minnesotans would not increase under the budget proposal he released at mid day.

Car repair, haircuts and other services would be taxed. And businesses would pay sales tax on more items.

Key to the Dayton budget is increasing taxes on the top 2 percent of Minnesota Nike Air Max 90 Moon Landing

Public works projects, funded by the state selling bonds, were not included in today's budget plan. However, a proposal is expected later in the year.

The plan includes a mixture of tax increases and decreases and it would spend more on education and jobs programs. It also cuts some specific programs.

He suggests $118 million in new public school funding, which averages $52 per student, and $125 million more for special education. Early learning would get $92 million more, with all day kindergarten receiving $40 million.

"It goes against my upbringing," Dayton said about taxing clothing. His family founded Dayton's department stores, which began the Target store chain.

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earners. His plan calls for increasing taxes for couples earning more than $250,000 a year and individuals with $150,000 incomes.

Dayton's fellow Democrats control the Legislature, and while they say there will be some disagreements with what Dayton wants, they generally agree with his ideas, especially raising taxes on the rich.

Minnesotans would pay taxes on clothing worth more than $100, rich Minnesotans' income tax would increase and property taxes would fall. Dayton said middle class Minnesotans will not pay more tax.

However, the proposal also would add sales taxes to businesses that sell to other businesses, which could be passed on to consumers. Dayton said he did not know how that would affect Minnesotans.

The governor wants to give the state's two higher education systems $80 million more each.

"For most Minnesota families, it is a wash," Dayton said, Nike Air Max Effort

Dayton calls for increasing cigarette and tobacco taxes while reducing corporate taxes by 14 percent. He also would reduce a statewide business property tax. Cigarette taxes would rise 94 cents a pack.

"The result of these changes in the income tax, sales tax and property tax would be to reduce the total state and local taxes paid by most Minnesotans," Dayton said.

Dayton mixes tax increases and cuts Nike Air Max Effort Tr On Feet

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in budget plan

Dayton said that should allow the University of Minnesota and Minnesota State Colleges and Universities systems to stop the rapid tuition increases that have occurred in the past few years.

Property taxes would fall $500 per property owner via a rebate, Dayton suggested.

"This is the largest sales tax reduction in the history of the state," Revenue Commissioner Myron Frans said, while taxing most services in the Nike Air Max Force 2 state.

For instance, that would up taxes on 883 people in St. Louis County, 128 in Beltrami County, 185 in Clay County, 258 in Kandiyohi County, 94 in Nobles County, 234 in Goodhue County, 2,858 in Washington County, 185 in Douglas County, 67 in Hubbard County and 72 in Stevens County.

Dayton's plan would increase revenues about $2 billion, with about half going to fill the state deficit and the rest to increase spending in areas such as education and jobs programs.

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adding that the plan does not increase the sales tax but broadens it.

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Republicans only have a say in funding public works projects, which require more than a simple majority to pass.

Frans said a Beltrami County couple with a $57,000 annual income and a $133,000 home would not pay more income taxes and they would receive a $500 property tax rebate. He said they would not pay more sales tax.

Republicans strongly disagree, saying such taxes will stymie economic development. However, they admit that Democrats can pass whatever budget they want.

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"I am sure it will give rise to a good many $99.99 deals around the state," the governor added.

Dayton's proposal would reduce the sales tax rate, but expands the tax to cover most services that now are not taxed.

"You've got to tax somebody," Dayton said.

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While Dayton said the budget plan is the beginning of discussion about taxing and spending, legislative Republicans and Democrats agree the two year budget for the cycle beginning July 1 will build off the Dayton proposal.

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