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Dayton Vetoes Tax Bill

Lack of emergency school funding the reason

May 17, 2018 - 7:24 am

(AP/WCCO Radio) -Governor Dayton chose a St. Paul elementary school as the backdrop Thursday morning to veto a bill that would sync Minnesota's tax code to the recent drastic federal changes. 

The measure cleared the Minnesota Senate Wednesday on a partly line vote of 34-33. The House passed the bill Tuesday, but it does not provide for the governor's demand of $138 million for public schools facing budget shortfalls. 

Dayton told WCCO Radio's Paul and Jordana on Wednesday afternoon that the Republicans' plan calls for 200 million dollars to be given to "multinational corporations to avoid taxes on their repatriated corporate profits. It just insane. Meanwhile, they say there's not enough money for the schools. Well, that's just not true," said Dayton.

Matching state and federal tax codes has been a marquee item this session. Failure to do so could lead to complications for tax filers and inadvertent tax increases.

The veto leaves lawmakers with only a few days to strike a deal in this session, but lawmakers say they would have time to craft legislation in the upcoming session early next year before the April tax deadline if necessary.