Gov. Mark Dayton unveiled his FY 2014-15 budget proposal Tuesday morning, arguing that it addresses the concerns of middle class Minnesotans. The budget includes tax increases on high incomes, alongside an expansion of the state sales tax to clothing purchases of $100 per item.

Here are the bullet points from the proposal:

- Expand sales tax to clothing above $100 and online sales (aka the "Amazon tax")
- Cut sales tax rate from 6.875% to 5.5%
- Income tax increases on couples making more than $250,000/year (singles at $150,000), new top tax bracket at 9.875% (from 7.85% now)
- Cigarette taxes raised 94 cents per pack
- Property tax relief, corporate income tax cut

Dayton challenged critics who claim that spending amounts ($1 billion over current levels) are too high or low.

"Some will say we spend too much in this budget, and some will say we don’t spend enough," Dayton said. "To those who claim this spending is too high, I challenge you to say exactly where more cuts should be made. And to those who say we need to spend more, I challenge you to say exactly where the money should come from."