Republicans in the Minnesota House and Senate are offering to drop their proposal to cut taxes if Governor Dayton drops his proposal to raise them. GOP legislative leaders presented Dayton with a budget offer today that cancels the $200 million in tax cuts in their plan and directs the money to funding for schools, public safety, the environment and other programs. Republican House Speaker Kurt Zellers called the offer significant and hopes Dayton will present his own offer.
“We have withdrawn our request for tax cuts,” Zellers said. “We ask him to withdraw his request for tax increases. This is something that we not only ran on but our members feel significant about. This is a major compromise building on our offer.”
Zellers says the proposal does not increase revenue in their overall budget plan, which Dayton says is necessary to reach a budget deal.
Dayton quickly rejected the offer saying it was a disappointment.
The two sides are at an impasse as the clock ticks towards a state government shutdown. Dayton wants to raise income taxes on Minnesota’s top earners to help erase the state’s $5 billion projected budget deficit. Republicans say they can do it through spending cuts. State government will shut down on July 1st if they fail to reach a budget deal.
Here’e the offer: