Update: Dayton Vetoes Tax Bill

ST. PAUL (AP) -- Gov. Mark Dayton has vetoed a bill that would have aligned Minnesota's state tax code with federal changes passed last year.

The Democratic governor rejected the bill passed by the GOP-controlled Legislature with about 20 grade-school students standing behind him at a St. Paul school. Dayton said the bill tilted toward the wealthy and corporations.

But the governor also warned earlier this week that he wouldn't sign a tax bill without the Legislature addressing his request for emergency aid to schools.

The GOP tax proposal modestly cuts Minnesota income tax rates. Republicans argue that Dayton's education request came too late in the session.