| For Immediate Release | For more information contact: |
| March 11, 1999 | Bill Walsh (651-296-0640) |
In a dramatic move today, Speaker of the House Steve Sviggum announced his caucus will back the sales tax rebate plan offered by Gov. Ventura as long as the governor and Senate Democrats back a « percent across the board income tax cut.
"We are meeting the governor's challenge to send him a sales tax rebate bill so we can get on to the permanent income tax cuts," said Sviggum. "The debate on the rebate is over. It's going to be a sales tax rebate. But we also have to give Minnesota families a permanent and significant income tax cut."
Sviggum called the new plan "The « Percent Solution" as he and Majority Leader Tim Pawlenty outlined their plan against the backdrop of over $4 billion in surplus revenue coming into the state over the next two years. There is $2.8 billion available for a permanent tax cut in the next biennium and $2 billion is sustainable till the year 2003. The surplus money is available even after an automatic 2.5% spending increase for inflation.
"With this much money, there is no excuse for the Governor and the Senate Democrats not to join us in a significant tax cut," said Pawlenty. "As we put together our budget over the next few weeks, we will show the Governor how we can accomplish a $2 billion permanent tax cut without cutting one dime of spending."
The House will vote today on a budget resolution setting the overall size of the state budget. The proposed resolution includes a 4.9% growth in spending over the next biennium, with $2 billion set aside for permanent tax cuts. The Republican budget has less spending and more tax cuts than Governor Ventura's budget and significantly less spending than previous budgets.
"In this new three party government, no one is going to get everything they want," said Sviggum. With this announcement, Republicans have made a huge step towards compromise and we expect the other sides meet us half way."
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