Governor Mark Dayton meets with Republican leaders this morning, trying to convince them to repeal new tax breaks for tobacco, businesses and wealthy estates — even as Republicans prepare to possibly sue Dayton for vetoing the legislature’s operating funds. Dayton acknowledges his vetoes are “very serious action,” but contends an overriding concern is the loss of a billion dollars in tax revenue. He says, “The consequences for Minnesota’s fiscal stability over the next decade and beyond are extremely serious.” Republicans respond years of budget surpluses demonstrate the state is collecting too much from taxpayers and they deserve to get at least some of their money back. As for Dayton’s vetoes, House Speaker Kurt Daudt says, “Where he violates the Constitution is by punitively, because he may not have liked the agreements that he made, line-item vetoing the entire funding for the legislature.”
Dayton says the latest revenue update, which shows tax collections lagging behind forecast, “reaffirms the uncertainty of Minnesota’s future financial circumstances” and the dangers of what he calls Republicans’ “irreponsible tax bill.” He says G-O-P lawmakers need to explain to Minnesotans “why eliminating a billion dollars in tax revenue for the state is healthy for the state of Minnesota.” Republicans respond leaving more money in the pockets of Minnesota families and businesses is the best way to ensure the state is in a strong position if there’s an economic downturn.