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Gov. Mark Dayton may have abandoned his plan to extend sales taxes to services, but that doesn't mean the Legislature has given up on the idea.
Dayton plans to revise his tax and budget proposal Wednesday after announcing Friday that he has dropped his push to expand the sales tax to business and consumer services in response to fierce opposition. He postponed announcing his revisions by a day after he went home ill Monday.
Despite the outcry over the governor's proposal, Bakk said sales taxes on services are still a logical target.
The governor's hopes of passing the most comprehensive overhaul of the state tax code in a generation apparently died when he dropped his sales tax expansion plan.
DFL legislative leaders said that won't change their priorities.
"It was really the governor who advocated tax reform," Lenczewski said. "We didn't run on tax reform. Our caucus ran on paying back the school shifts and no more budget gimmicks."
Thissen said House DFLers' top priorities are balancing the budget and "getting it square," and "making investments in education and property tax relief."
Increasing funding for education also is the governor's top priority. "That will happen," predicted Dayton spokeswoman Katie Tinucci.