Kelliher to consider tax breaks for vets only after budget is balanced

Democrat Margaret Anderson Kelliher held a news conference today to tout her jobs initiative in North Minneapolis. During the q and a, Kelliher was asked about a proposal that would exempt pensions and military pay from state income taxes. When asked whether she supported the full exemption, Kelliher said as Speaker of the Minnesota House, she pushed to give some tax breaks to veterans and increased combat pay for members of the Minnesota National Guard. But she wasn't as enthusiastic about the idea of supporting a bill that would exempt military pay and pensions for veterans.

Kelliher: "We did the compromise in 2008 which began to address this issue. We provided millions of tax dollar relief for military families and veterans targeted to those who most needed that help in the state of Minnesota. I certainly as governor will certainly consider every policy that will help veterans and their families."

Reporter: "So you're not saying yes or no to the full benefit?"

Kelliher: "I think we have to balance this budget first and then we can consider a lot of things that can help our economy and attract people to the state."

The issue popped up after the Minnesota Republican Party criticized one of Kelliher's DFL Primary opponents, Mark Dayton, for saying he wouldn't support the measure. Dayton said he supports veterans and their current benefits but can't support tax cuts while trying to deal with a nearly $6 billion budget deficit. The Minnesota Department of Revenue estimates the tax break would cost the state $20 million a year.

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