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House Republicans Unveil Tax Relief Plan

MINNEAPOLIS (WCCO) -- Republicans in the state House unveiled a sweeping tax relief package Monday they hope will mean lower taxes for more than 2 million Minnesotans.

It's a plan that Democrats said includes only one clear winner -- businesses and corporations.

Republicans say almost every Minnesota taxpayer at every income level will be affected, but the plan is focused on the middle class.

"Our priority is to take a stark turn from the last two years of spending every dime that (Democrats) can get their hands on, and really prioritize Minnesotans," said Speaker Kurt Daudt, (R-Crown).

The Republican plan includes is a temporary, two-year $1,000 tax exemption.

A family of four at $75,000 a year would get a tax cut of $282.

For seniors, there's a phase-out of taxes on social security.

For veterans, it abolishes the income tax on military pay and pensions.

"It boils down to basic philosophy. What do you want?" said Rep. Greg Davids, (R-Preston), the chair of the Taxes Committee. "Do you want bigger government? Or do you want the people in the state of Minnesota to make the decision about how they spend their money?"

Democrats say it's at the expense of education and health care.

"If you look at this bill, it is a huge giveaway to corporations and businesses," said Rep. Paul Thissen, the DFL minority leader, "and middle class Minnesotans are not getting the benefits that Republicans are telling them they are getting."

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