Walz pitches sales tax cut, curbs to spending in budget proposal

Zoom in: Walz said his $65.9 billion two-year spending plan would leave $2.1 billion on the bottom line, a step toward addressing a potential multibillion dollar deficit on the horizon. It includes:

• 💵 Lowering the state sales tax rate by 0.075% — saving shoppers about 7.5 cents on a $100 purchase
• 💼 Adding sales taxes to legal, financial and accounting services and increasing a surcharge on some health insurance plans
• ✂️ Limiting spending increases on disability services for low-income residents and special education transportation to save more than $1.3 billion. He also wants to reduce state funding for private schools.

The other side: House GOP Leader Lisa Demuth shot down the idea of tax increases for currently exempt financial and legal services, and expressed concerns about the impacts the cuts would have on long-term care.

The intrigue: In a sign that he's looking to keep a national profile following his failed vice presidential bid, Walz previewed the sales tax proposal first to Washington, D.C.-based Politico Playbook.

• That blurb framed the plan as a respite from potential cost increases consumers may face under President-elect Trump's proposed tariffs.

What to watch: Before they can begin budget negotiations, legislators — or the courts — have to resolve the dispute over control of the House.