Minn. Senate tax plan starts top-tier rate sooner
More Minnesota taxpayers would be covered by a new top-end income tax rate in a Senate proposal than would feel the sting in competing proposals from the governor and House Democrats.
The Senate's proposal unveiled Tuesday raises the tax rate on the top bracket from an existing 7.85 percent to 9.4 percent. It would kick in on income for married couples when their earnings top $141,000 and for individuals making more than $80,000. It would bring in more than $1.1 billion.
Gov. Mark Dayton has proposed a new 9.85 percent tax rate on income above $250,000 for married couples and $150,000 for single filers. In the House, the income tax wouldn't kick in as soon and the permanent tax rate is lower than the governor's recommendation. But House Democrats would also tack a 4 percentage point surcharge on incomes above $500,000.
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