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Capitol View®
Tim Pugmire

Dayton says tax cuts may be coming

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DFL Gov. Mark Dayton is defending Minnesota's recent income tax increase on top earners as lawmakers in neighboring Wisconsin consider a plan to cut income taxes.

He also suggested that Minnesota could be looking at its own tax cuts in the coming years.

The majority of the proposed cut in Wisconsin would benefit those earning more than $100,000 a year. Dayton told reporters today that he didn't know specifics of the Wisconsin proposal. He said that while Minnesota's taxes are higher than many other states, its economic performance is also better than most, including Wisconsin.

"We have a formula that works for us, a high-value, well-educated people, and very productive people," Dayton said. "We'll keep working on that. But if we get some surpluses in the next year or two, which looks promising so far, and we get the school debt paid off, there's nothing I'd rather do than reduce taxes."

Dayton said a tax cut could be up for consideration as soon as next session, but more likely in 2015. The first-term Democrat is running for re-election next year.