Minn. GOP, DFL Dig In On Taxes VS. Spending Cuts

ST. PAUL (AP) - The argument over taxes and spending at Minnesota's Capitol this year spilled out in a contentious committee hearing as Democrats and their allies demanded higher state taxes to help fix a budget deficit while Republicans who want more spending cuts beat up on Gov. Mark Dayton's proposed income tax hike.

The House Taxes Committee held a short hearing Wednesday on Dayton's tax-hike proposal, in the form of a bill sponsored by Rep. Michael Paymar. The St. Paul Democrat says focusing only on spending cuts and shifts to erase the state's projected $5 billion deficit threatens to "erode that which once made Minnesota vibrant and special."

House Republicans have passed their own tax proposal that cuts income taxes and property taxes on businesses while eliminating state aid to several large cities.

(Copyright 2011 by The Associated Press. All Rights Reserved.)