tag:blogger.com,1999:blog-7338234465348018941.post-28119700013738584322008-03-07T16:38:00.001-06:002008-03-07T16:41:52.802-06:00Associated Press<br />Article Last Updated: 03/07/2008 04:03:02 PM CST<br /><br />Gov. Tim Pawlenty's budget fix comes with a twist: In addition to spending cuts, he's proposing a statewide sales tax reduction.<br /><br />The 1/8th of a percent cut to the sales tax would actually deepen Minnesota's anticipated deficit, which economic forecasters say will hit $935 million. Pawlenty, a Republican, said today that the sales tax cut would provide an economic stimulus and cost the state treasury $77 million over the next 16 months.<br /><br />"This is a modest tax cut, but it's a step in the right direction," Pawlenty said.<br /><br />His plan seeks to use $250 million from the state budget reserve and shifts another $250 million from a health care fund to cover subsidized care for disadvantaged Minnesotans.<br /><br />Nobody will be removed" from government health programs, he said. But he said a planned expansion of coverage would be canceled.<br /><br />Tax collectors would pull in $102 million more by doing away with an exemption some corporations used to shield income from overseas operations.<br /><br /><br /><a href="http://www.twincities.com/allheadlines/ci_8492077">Click here to read the entire article.</a>thammhttp://www.blogger.com/profile/01921457428525238541noreply@blogger.com