Senate May Expand Tax Plan Beyond Top Two Percent

MINNEAPOLIS (AP) - Senate Majority Leader Tom Bakk says the Senate's tax plan will likely hit more than 2 percent of the state's top earners with an income tax increase.

Bakk says that rate increase will be lower than Gov. Mark Dayton's proposal of 9.85 percent, but broadened to more taxpayers. He says it won't raise alcohol taxes.

Bakk previewed the Senate plan Monday at a University of Minnesota forum with House Speaker Paul Thissen. The full Senate plan is to be unveiled Tuesday.

The House plan calls for such an increase on those making more than $400,000 a year, plus a 4 percent surcharge for two years on incomes over $500,000.

Bakk says some income tax increase on top earners and a cigarette tax hike will likely become law this year.