ST. PAUL -- Democrats in control of the Minnesota Legislature pushed through a second tax proposal late Thursday that combines major tax and spending decisions.
Republicans objected loudly to the maneuvering, which put major budget decisions in the hands of only several lawmakers who worked into the night.
The alternative tax bill could raise about $1 billion through a new income tax bracket on the wealthiest Minnesotans and an alcohol tax increase -- and other measures -- to pay for two of the largest budget areas where agreements have yet to be reached -- health and human services and public school education.
Senate Taxes Chairman Tom Bakk, DFL-Cook, said there are "stark differences" between a the original House tax plan that raises $1.5 billion and a Senate bill that increases taxes by $2.2 billion.
House Taxes Chairwoman Ann Lenczewski, DFL-Bloomington, said Gov. Tim Pawlenty has proposed $1 billion in new revenue by borrowing to help balance the state budget.
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The House will compromise by lowering its proposed tax increase to $1 billion, Lenczewski said.
The bill, which surprised Capitol observers, is part of the debate about closing a $4.6 billion state budget shortfall and bringing the legislative session to a close by its May 18 adjournment date.
"We're trying to create multiple avenues to get compromise and a solution," Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said.
Republican Pawlenty has said he will not support tax increases.
"We'll just let the Democrats get the tax increases out of their system early," House Minority Leader Marty Seifert, R-Marshall, said. "At the end of the day, we'll have to come up with something different."
