Friday, May 08, 2009

You've got taxes! 

Details are emerging of a new tax plan from the Minnesota DFL leadership, dropped this morning into a conference committee "without any discussion" according to Republican sources. The details I have at this time are for about a billion dollars, half of which comes from a new 9.0% personal income tax charged on income over $250k for married couples filing jointly ($141,250 for singles and $212,500 for marrieds filing separately -- updated via Andy). An increase in tax on all varieties of alcohol and a surtax on "excess (?)" interest income on credit cards makes up the rest. $585 million of that money goes to E-12 education and the remainder to HHS.

There's a press conference of the Republican legislative leaders happening probably about now. More details as I get them.

UPDATE: Conference report is up. Larry Schumacher finds it odd.
I've never seen a bill that wraps both taxing and spending provisions together, and neither have the other two reporters on staff here who've covered the Minnesota Legislature in the past.
Yes, but it puts two powerful lobbies in play to campaign for a tax increase. (Not like they hadn't already.) For them, it's not "you've got taxes!" but "you've got OPM!"

UPDATE 2: Found an email in a folder I wasn't watching this morning from the House Republican Caucus. They note on this bill:

UPDATE LAST: As expected, Pawlenty calls it DOA:
The end of the session is rapidly approaching. I understand the DFL majority is poised to pass a hastily processed and ill considered letter tax increase proposal.

If you insist on passing such legislation, I respectfully request you send it to me today so I can veto it immediately and leave a maximum number of days for better legislation to be considered and passed.
Rep. Marty Seifert via Twitter notes that all Republicans plus Rep. Gene Pewlowski voted against the measure, which passed 86-47.

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