Minn. Senate to vote on clothing, income tax hikes

Published 9:53 am Monday, April 29, 2013

ST. PAUL — Minnesota’s Senate is gearing up for debate on a plan to repeal the longstanding sales tax exemption on clothes.

The Senate convenes this afternoon to take up its tax bill. In addition to a new clothing tax, it raises income taxes on the state’s highest earners.

Under the plan, individuals who earn $80,000 and up and joint filers with taxable income above $141,000 would see their state rate jump from 7.85 percent to 9.4 percent. The bill’s author says that’s about 6 percent of filers.

Email newsletter signup

The Senate plan goes further than separate proposals by Gov. Mark Dayton and House Democrats, who both increase income tax burden only for the top 2 percent. The House tax bill does have an additional surcharge on a small slice of even wealthier people.