ST. PAUL – Minnesota House Democrat leaders announced
earlier this week a plan to raise taxes on alcohol and cigarettes, as well as a
tax hike on the state’s top earners, WDAZ.com reports.
The extra revenue would fund job creation, property tax
relief and education initiatives, legislative leaders said.
“Those critical investments are not free,” state House
Speaker Paul Thissen said.
Thissen said the proposed alcohol tax increase would
generate roughly $350 million over two years and would equate to about 7 cents
per beer, 47 cents per bottle of wine and $1.58 on a bottle of liquor.
The cigarette tax hike would add $1.60 per pack, raising the
tax to $2.83 per pack, and generate more than $400 million annually for the
state.
Republican Greg Davids said the excise taxes are problematic
because they disproportionately affect low-income taxpayers.
Thissen said he expects the tax bill to go before the full
House next week. Support for the increases are not strong outside the House.