Dayton renews call for income tax hike on wealthy

Gov. Mark Dayton is calling for an income tax increase on Minnesota's wealthiest citizens.

Dayton's budget proposal Tuesday carries out what's been one a signature goal of his governorship. He would create a new 4th tier income tax bracket of 9.85 percent, which would apply to taxable income over $250,000 for married joint filers and single filers who earn above $150,000.

Dayton stresses the new rate would apply to only 2 percent of Minnesota taxpayers. His administration says it would raise $1.1 billion in the next budget cycle.

The proposed income tax hike on high earners is part of a broader tax overhaul that would lower the state's sales tax rate but apply it to more things, and provide a rebate to property taxpayers in 2014.