Minnesota Democrat; Options include income tax hike for all
ST. PAUL — A key Senate Democrat says it will take more than one tax increase to raise $2 billion in new tax revenue.
Senate Taxes Chairman Tom Bakk says options include a new income tax rate for the wealthy, across-the-board income tax increases and extending the sales tax to music downloads and Internet purchases.
Bakk held a Capitol news conference to respond to Republicans’ allegations that the DFL tax plan would create the nation’s highest income tax rate.
The Democrat from Cook says their plan isn’t fully formed yet. Bakk says it might include a new income tax bracket for the wealthy or a rollback of income tax cuts made in 1999 and 2000 for all incomes. A windfall tax on interest rates above 15 percent is also getting a look.