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Plan for $500M Tax Cuts, Repeals Zooms in House

Governor Mark Dayton, Photo by WJON.com’s Jim Maurice

ST. PAUL, Minn. (AP) – A $500 million package containing middle-income tax cuts and the repeal of some business taxes is zooming through the Minnesota House.

Only three days into their session, House Tax Committee members approved the plan Thursday. After one more committee stop it could be ready for a floor vote next week.

The proposal provides $200 million in middle class-targeted tax cuts by conforming state tax code to federal changes. It also repeals three sales tax hikes on businesses that lawmakers passed last year, giving refunds to some who have already paid the taxes.

Democratic Gov. Mark Dayton is on board with the scope of the plan and has asked for a bill by March 14. Senate Democrats have been reluctant to sign on until they’re sure the state can afford it.

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