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Capitol View®
Tim Pugmire

House passes $1 billion tax bill

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The Minnesota House passed a new $1 billion tax increase bill tonight on a vote of 86 to 45.

A similar result is expected in the Senate, even though Governor Tim Pawlenty is promising a quick veto of the bill. Under the DFL-backed measure, income taxes would increase for married couple making more than $250,000. Taxes on alcoholic beverages would also rise, and credit card companies would be hit with a new surtax.

Democrats say the bill raises the same amount of revenue as the the governor's budget. But they claim their approach is fairer and more responsible. During the floor debate, House Majority Leader Tony Sertich, DFL-Chisholm, described the $1 billion bill as a compromise.

"This proposal before us shows leadership," Sertich said. "It breaks a log jam. It says we're going to raise revenue in a fair and responsible way."

House and Senate Republicans say the tax bill would add an extra burden on the people who help create jobs. They also object to the fast process used to develop the bill. Rep. Laura Brod, R-New Prague, says Democrats were over selling the bill as a compromise.

"You cannot suggest that we're going to get out of session with this package, because it is a package that is going to be rejected," Brod said. "And it's a package that should be rejected because it's going to kill jobs in our communities and hurt our economy."

The House vote was four shy of what Democrats would need to override a veto from the Republican governor. But earlier in the day, House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said an override vote is a possibility.

"If the governor remains inflexible and so disengaged and does not bring ongoing revenue to the budget shortfall, then I think the Legislature and the House will be left with only one choice, and that is to attempt an override," Kelliher said.