Minnesota House Passes GOP-Favored Income Tax Cut

ST. PAUL  (AP) -- The Minnesota House of Representatives has voted to cut state income taxes as part of a package of changes to state tax policy, but the bill faces a cold reception from Democratic Gov. Mark Dayton.

The House passed its tax omnibus bill Monday evening on a largely party-line vote of 73-59. The bill cuts state spending by about $550 million as part of the GOP plan to erase the state's projected $5 billion budget shortfall.

The GOP plan cuts income taxes by $221 million and eliminates state aid payments to the cities of Minneapolis, St. Paul and Duluth. Republicans say it frees up more money for private investment, but Democrats say the cutbacks will result in higher property taxes that fall hardest on people least able to pay it.

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