Monday, May 18, 2009

One More Try. The Tax Conference Committee has decided to send one more bill to the Governor with their position on how to remedy the $2.7 billion budget gap between projected revenue and projected budget commitments. The provisions of the latest iteration look a lot like has been sent to the Governor in the past
  • 73%/27% E-12 Payment Shift.
  • Early Recognition of Education Property Tax
  • New Tax Rate on High Income Minnesotans
  • Increased Excise Tax on Beer, Wine, and Spirits
  • Tax on Excess Interest
As a sweetener to the Governor, the conference committee included the sales tax exemption on new capital equipment purposes.

Some are wondering why the Tax Conference Committee is bothering, but I suppose there is nothing wrong-headed about sending up one more proposal, although it is likely to meet with the same fate as the tax bill that was sent to the Governor ten days ago.

I'll report on what happens in 47 minutes.

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