Legislative leaders react to Dayton tax plan

Republican legislative leaders are ramping up their criticism of DFL Gov. Mark Dayton's tax reform proposal.

Dayton unveiled a plan that would expand the state sales tax and increase income taxes for top earners. It would also lower the corporate tax rate and provide $500 property tax rebates to all homeowners.

Senate Minority Leader David Hann, R-Eden Prairie, said those rebates do nothing to reduce property taxes.

"Those local property taxes were put in place by locally elected officials, elected by local people, sometimes by referendum," Hann said. "They voted them on themselves. They're paying them. Now they're going to paid by somebody else. But the taxes themselves are not changing. So these are not tax cuts. This is a tax shift."

Hann was also critical of the governor's income tax and sales tax proposals, which he claims will be harmful to the state economy.

Meanwhile, Democratic lawmakers continued to praise Dayton's tax reform proposals, while also predicting that changes to the plan are likely in the months ahead.

House and Senate leaders have not yet fully endorsed any of the individual proposals. Sen. Jeff Hayden, DFL-Minneapolis, said the proposed $500 property tax rebates will face tough questions.

"I know I've heard the majority leader talk about really taking a good look at that," Hayden said. "And figuring out if the governor's plan, which is to give everybody a rebate, makes sense. Or should we target that? Should we means test it? So I think that that's something that will be a point of a lot of conversation."

House and Senate tax committees are scheduled to discuss Dayton's plan on Tuesday.

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