Minnesota Lawyer
Democratic gubernatorial candidate Mark Dayton released an updated budget plan Tuesday, aiming to close the state’s nearly $6 billion budget deficit after his initial proposal for raising top-bracket income taxes fell far short of raising the promised $4 billion in revenue. Dayton’s revised budget goes a long way toward closing the gap, but still falls nearly $1 billion short of balancing the books.
The revised plan seeks to raise more than $3.6 billion in new revenue while also cutting more than $1.2 billion from the state budget, closing nearly $4.9 billion of the state’s $5.8 billion deficit.
To raise more revenue than his original tax hike plan, Dayton has added a $212.7 million tax on “predatory credit card companies” and their profits that stem from charging cardholders more than 15 percent interest (a close cousin of a similar proposal introduced previously by Iron Range Rep. Tom Rukavina of Virginia). Dayton would also look to crack down on tax evaders, netting the state an additional $340 million, according to his estimates.
Dayton’s plan points to an estimated $300 million from a possible state-owned and operated casino near the Mall of America. More than $276 million in revenue would also come from eliminating tax credits and subtractions for foreign companies and royalties along with the so-called “snowbird” loophole that allows people who live outside the state for more than six months each year to avoid paying state income taxes.
Dayton also included a number of budget cuts in his revised plan, including proposals to save money by revamping how the state leases buildings and office space, cutting in half the state’s $900 million in outsourced contracts, increasing efficiency in the state’s health programs and eliminating the Minnesota Trade Office.
To read the entire budget document from the campaign, click here.
