TAX + ARENA?...two biggies intertwined, hostage

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Governor Arne Carlson says he will veto a proposed tax-relief bill unless House and Senate DFLers increase the payout for taxpayers. DFLers accuse the Governor of holding tax relief hostage for the sake of a new NHL hockey arena. We have the latest on this Minnesota political battle over taxes and sports arenas from Minnesota Public Radio's Martin Kaste: Governor Carlson made his position very clear today: He wants more money for property tax rebates. And he wants more money for permanent cuts in state income taxes. The governor says $500 million dollars in property tax rebates and another $400 million in property tax rate cuts is not enough. That proposed deal was reached late last night between House and Senate negotiators. But as the governor told a news conference today, that deal is now under a veto threat. He says the sooner legislators understand that, the better:

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