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Dayton confronts Minn. businesses over taxes

 Minnesota (AP) - companies have opposed his budget bowed and Minnesota governor mark said on Wednesday, he was determined to the highest bid by improving the income tax on the income.
Chamber of commerce luncheon often confrontational rhetoric, in Minnesota's democratic governor, said he would not back the taxable income of more than $250000, $150000 couples and in single file manager from the proposed new top bracket. This, he says, will be a call for $180 million to increase the cornerstone of national fiscal revenue.
Last week, gave up a controversial proposal, in the face of intense opposition to expand sales in the business. He was due on Thursday the revised budget.
Minnesota has won our success, we don't have rich oil and gas reserves, we don't have the beautiful scenery of the sea or the warm winter. It never give us, we also know that it is not free, "Dayton said before quoted before tax, the federal reserve and workforce development investment at school.
In addition to blocking expects $627 million deficit, said, he wants to use the money to generate new revenue and cigarette tax, establish pre-school education programs, enlarge the availability of a full-time kindergarten, improve public universities.
, said he will revised budget does not include the owner of the property tax breaks or corporate tax breaks, he initially proposed. Political opponents to challenge his argument that spending cuts would be a better route to a balanced budget, without damage to the country's business environment.
"You can't just sieve like a slogan, around reform. It must be the real thing," he said. ", "believe me, we will cut way, we can, we are not going to the barbarians of the process. "
He didn't go well.
While being introduced to a standing ovation, the audience of the loudest applause came, after using the question and the answer will tell, Minnesota of the budget growing too fast and the cause of the consumption is an eternal problem. Other members of the chamber of commerce told the governor, they dislike impression, the purpose of his plan is to increase the tax of 2% of the big rich, they say, their small business will be affected, because they through the personal income tax code file.
Chamber of commerce President David olson said, business hall is not approve any new taxes. With the discussion of sales, says olson, focus will shift to beat the income tax planning.
"It's not just the rich. This is the small companies," he said.
The file through the individual income tax in the enterprises of the Minnesota, 6% of people will be affected by the new rates, Dayton said. Will suffer, he says, the new tax, an average annual income of $645000, and 54000 in the file manager. He predicts that over the next two years the tax, in order to raise $1.1 billion.
Senate majority leader Tom Bakk, said this week, senate Democrats would consider making a wider coverage, maybe the top 5% of wage earners in the income tax.
, said he was revised budget, also includes a person who spends his life a year, as part of the "snowbird tax" in different states. At present, the income tax does not apply to live at least 6 months, the rest of the people, but his suggestion, the threshold is reduced to two months. Dayton admitted that taxes will be difficult to perform, he do not want it to shall prevail.



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