Dayton outlines tax increase plan for wealthy

Former U.S. Senator Mark Dayton, a DFL candidate for governor, is offering new details of his "tax the rich" proposal.

Dayton has frequently talked on the campaign trail about his proposal to raise income taxes for the wealthiest 10 percent of Minnesotans. He said the change would bring fairness to the tax system and provide the state much-needed revenue.

During a wide-ranging news conference Monday, Dayton said he would propose three new income tax tiers. He also said households with annual income of $150,000 and above would have to pay more.

"You've got three ways you can balance the budget," said Dayton. "You can raise taxes on the richest Minnesotans. You can raise taxes on the rest of Minnesotans, or you can pretend you're going to wave some magic wand and $5 billion to $7 billion is going to disappear from state spending without consequence to anyone, which is the Republican answer right now, which belongs more on the comic page than it does on the front page."

A state Republican party official blasted Dayton for offering what he called an "out of touch tax and spend philosophy."

Dayton also said Monday he would consider supporting a Twin Cities casino to raise money for Minnesota's ailing budget, but not for a new Vikings stadium. He said a metro-area casino would raise about $200 million a year.

He says such a facility would bring "much needed competition" to Mystic Lake Casino, the only tribally run casino in the Twin Cities. The Prior Lake establishment is owned by the Shakopee Mdewakanton Sioux Community.

(The Associated Press contributed to this report)