Dayton Wants Tax Hike on Wealthy for Schools

ST. PAUL (AP) - Gov. Mark Dayton is asking Minnesota's wealthiest citizens to pay more than a billion dollars in new income taxes in order to boost state funding for schools and colleges by nearly $900 million.

The Democratic governor released the updated budget proposal Thursday. As expected, Dayton dropped a proposed sales tax overhaul that generated strong opposition from business leaders.

Dayton also jettisoned a $500 yearly property tax rebate, but puts additional money into an existing program that provides property tax rebates and beefs up a property tax credit for renters. He boosts state aid programs to city and county governments.

Dayton also continues to call for a tobacco tax increase and for eliminating tax loopholes that benefit corporations. He says it's not responsible budgeting to simply draw a line against all tax hikes.