The budget that Governor Dayton put forward has some spending increases and some spending cuts, but I am not interested in those.  I am just interested in the revenue increases, otherwise known as taxes.  The proposal includes provisions about income taxes, sales taxes, and property taxes.  I tackle the sales tax in a separate post  –  you should check it out. 

For the income tax it raises the 7.85% rate to 9.85% for singles with taxable income over $150k and married taxpayers with taxable income over $250k. That equates to a 25.4% increase in the tax rate.  That 9.85% top rate would rank MN as one of the top 5 individual income tax rates in the country.

On the property tax front, there would be a $500 refund for homeowners.  The point of this is to even out the revenue sources so 1/3 of the state’s revenue comes from income tax, sales tax, and property tax.  I suppose it’s also meant to soften the blow that income taxes are increasing and sales tax is being broadened. 
Be prepared for a big fight about this budget proposal, but keep in mind the Democrats control the MN House and the Senate, so I would expect a lot of this proposal to be enacted.  The higher income tax seems likely to pass although the property tax and sales tax proposals I am not so sure.  Whatever the result, I will be on top of it.