The Daily Digest (Tax talk at the Capitol, DFL guards against overreach, Recount week in legislative races)

Democrats who will control the Legislature in January say Governor Dayton's push to increase income taxes on top earners will be one of several ideas on the table. Dayton is weighing an overhaul to the tax system which will be released when he releases his two-year budget proposal.

AP says DFL leaders are guarding against overreach.

DFL Sen. Tom Bakk, who will be Senate Majority Leader when the Democrats seize control of the Senate in January, told the Mesabi Daily News that the Republicans didn't know how to govern in the majority.

GOP Rep. Kurt Daudt, who will be House Minority Leader in January, is being realistic about his party's power in the Minnesota House over the next two years.

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There will be two recounts in legislative races this week. In Alexandria, GOP Rep. Mary Franson's lead has increased to eleven votes after a judge ruled an error occurred on Election Day.

Some illegal ballots were discovered in Mower County.

The Pi Press says some new Minnesota legislators are getting a second chance.

The Citizens Board of the Minnesota Pollution Control Agency will get an update Tuesday on research under way to determine if the state should change its standard for sulfate in wild rice waters.

Forums on priorities for the environment begin this week.

The Met Council gave out $5.7 million in grants.

Economy

The holiday shopping season is off to a record start.

Congress

A growing number of lawmakers say they will avoid dropping off of the fiscal cliff.

Several Republicans have indicated that they're willing to break their no new taxes pledge.

There is still a wide gulf on taxes though.

The White House is pressing for a rule book on drones.

GOP Sen. John McCain says Republicans should leave the issue of abortion alone.

2016

Iowa's governor wants to end the Republican Straw Poll. He used GOP Rep. Michele Bachmann as an example as to why it's not working (Bachmann won the last Straw Poll).