Dayton stresses the new rate would apply to only 2 percent of Minnesota taxpayers.
Gov. Mark Dayton is calling for an income tax increase on Minnesota's wealthiest citizens.
Dayton's budget proposal Tuesday carries out what's been one a signature goal of his governorship. He would create a new 4th tier income tax bracket of 9.85 percent, which would apply to taxable income over $250,000 for married joint filers and single filers who earn above $150,000.
Dayton stresses the new rate would apply to only 2 percent of Minnesota taxpayers. His administration says it would raise $1.1 billion in the next budget cycle.
The proposed income tax hike on high earners is part of a broader tax overhaul that would lower the state's sales tax rate but apply it to more things, and provide a rebate to property taxpayers in 2014.