Dayton drops business to business tax in revised budget

3:19 PM, Mar 8, 2013   |    comments
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ST. PAUL, Minn. - Governor Mark Dayton's revised budget won't officially be released until next week, but we already know one thing that won't be on it.

Dayton announced Friday that he is dropping his proposed sales tax on business to business services.  

He made the announcement to an audience of business professionals at a TwinWest Chamber of Commerce event in St. Louis Park.

Dayton told those attending that many business owners and professionals have voiced concern about the sales tax, which prompted harsh criticism and speculation that it would cause business interests to leave the state.

The Democratic governor was banking on the sales tax expansion to also to pay for other program spending and tax breaks. By taxing legal, accounting and other services, Dayton was aiming to raise more than $2 billion over the next two years.

Dayton is standing behind his plan to raise income taxes on the wealthy.


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