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Dayton pits tax credit vs. corporate tax

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Mar 12, 2012 at 12:11 pm

ST. PAUL, Minn. (AP) - Gov. Mark Dayton says he'll try to pare back an overseas corporate tax break to finance a tax credit he wants for Minnesota companies that hire veterans, students or the currently unemployed.

The tax break-for-tax break swap is the cornerstone of a supplemental budget he released Monday. It contains roughly $60 million in changes to a multibillion-dollar budget. Other features include reversing some health program cuts made a year ago.

SUPPLEMENTAL BUDGET PROPOSAL: Read Gov. Dayton's revised proposal for the current two-year state budget

Lawmakers set the state's two-year budget last year and technically don't have to adjust it.

Dayton's proposal hinges on the reduction of a tax preference for Minnesota businesses with overseas operations or subsidiaries. The change would generate $40 million if enacted this year.

Republicans have long resisted the corporate tax change, arguing it would be a hardship on businesses.