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Elizabeth Dunbar
St. Paul, Minn.

A look at the DFL's tax plan

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DFL legislative leaders have introduced a plan to increase income taxes for the state's wealthiest residents to help fill a nearly $3 billion deficit. Another part of the plan calls for $2.5 billion in cuts. Here's a look at the plan, which the House and Senate plan to vote on Monday.

A NEW INCOME TAX BRACKET

-- Minnesota married/joint income tax filers earning more than $200,000 a year after deductions and exemptions would have to pay 9.1 percent on money earned over that threshold. For example, a couple with an adjusted gross income of $350,000 would pay 7.85 percent of $200,000 plus 9.15 percent of $150,000 in state income taxes.

-- The fourth-tier income tax bracket would go away in 2013, but only if the state's February revenue forecast that year shows the state has a $500 million surplus.

-- Federal income tax cuts that are set to expire would expire a year earlier in Minnesota, helping the state collect additional revenue.

-- DFL leaders say 75 percent of the revenue generated under the plan will come from couples earning more than $500,000 a year.

The tax proposal will add about $435 million in new revenue

SCHOOLS PAYMENT SHIFT

-- The DFL plan calls for a $1.7 billion accounting shift to K-12 schools to help fill the budget hole. DFL leaders said the new tax revenue would help pay back the money borrowed from the schools.

SPENDING CUTS

The DFL budget plan includes about $2.5 billion in cuts. Here's a rough breakdown:

-- Nearly $300 million in cuts to local government aid

-- $147 million in cuts to health and human services

-- $100 million cut to higher education

-- Eliminating the Political Contribution Refund, saving $10 million

-- $43.8 million in cuts to environment and energy programs

-- $3.7 million in cuts to various state agencies

-- $3.3 million in cuts to transportation

-- $1.5 million in cuts to economic development and housing

-- $985,000 in cuts to the Minnesota Department of Agriculture

A detailed spreadsheet of the DFL's budget plan can be found here.

(MPR reporter Tom Scheck contributed to this report.)