Minnesota Gov. Mark Dayton wants to raise the state's top income-tax rate temporarily to 13.95%, which would be the highest in any state, to help close a $6.2 billion deficit.

Mr. Dayton, a Democrat, on Tuesday proposed raising the top rate on couples earning more than $150,000 of taxable income to 10.95%, up from 7.85%. He also suggested adding a 3% surcharge on taxable income above $500,000 for the next two years. In addition, he wants to create a new, higher property-tax bracket for homes valued at more than $1 million.

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