The Daily Digest

It's the seventh day of the state government shutdown.

Gov. Dayton has revised his tax plan with the hopes of ending the stalemate. Dayton said he's willing to let Republicans choose between a temporary income tax hike on millionaires or a $1 a pack increase on cigarettes. Republicans quickly rejected the plan.

Read Dayton's latest offer and watch video of Dayton and GOP leaders here.

Tidbit: There's a political element to the latest offer. Dayton is proposing two tax hikes that are extremely popular with the public with the hopes of making Republicans look extreme. Republicans are suggesting Dayton wants to rely on any tax because he's dead set on increasing spending.

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Tidbit2: Dayton also forces a few GOP senior members to explain why they could vote for a cigarette tax in 2005 but not in 2011. Here's who voted to remove the cigarette fee from the Health and Human Services budget bill in 2005.

In an interview with MPR News, GOP Rep. Kurt Zellers renewed his call to pass a "lights on" bill and said gambling could be on the table. You can listen to the interview here.

Tidbit: Gov. Dayton said GOP leaders told him they didn't have the votes to get any gambling bills through their respective bodies.

Several GOP lawmakers tell MinnPost that borrowing against future tobacco payments is not additional revenue.

Laid off employees rally again at the State Capitol.

City Pages has a list of House members who aren't taking a salary during the shutdown.

Tidbit: Dayton's spokeswoman says Lt. Gov. Yvonne Prettner Solon has elected to not take a salary during the government shutdown.

The Construction Trades are pushing for a bonding bill. They also say the shutdown is causing economic hard times for their members.

Shutdown Impact

AP says the shutdown will cost the state millions.

Parents await a ruling on the child care assistance subsidy.

The shutdown is delaying the environment review of PolyMet.

Worker's comp claims are in limbo

Laid off fraud investigators want to keep working.

The Star Tribune says transit woes loom.

MPR says counties are trying to cope with the effects of the state shutdown.

Care for the elderly and disabled is strained.

The shutdown cancels Minnesota Historical Society concerts.

The shutdown has also halted the angel investment tax credit.

Vikings Stadium

St. Paul's City Council unanimously rejects a sales tax for the Vikings stadium. The resolution is symbolic and has no impact on the stadium deal.

Tidbit: Dayton says he has not had an conversations on a Vikings stadium for weeks.

Sharing is good

The new leaders at Minnesota's higher education institutions are aiming for collaboration.

Congress

In debt talks, President Obama suggested cuts to Social Security.

Senate Democrats, including DFL Sen. Al Franken, insist they'll protect Medicare in the deficit reduction talks.

President Obama took part in a Twitter town hall.

Congress is being pressured to act in a No Child Left Behind overhaul. GOP Rep. John Kline is mentioned.

DFL Rep. Betty McCollum presents NASCAR and Afghanistan amendments.

McCollum also took the floor of the U.S. House to criticize Republicans in the MN Legislature.

Race for Congress

Democrat Rick Nolan, who served in the U.S. House thirty years ago, will challenge GOP Rep. Chip Cravaack.

Race for President

Iowa Democrats say they're confident of President Obama's reelection.

Mitt Romney is ahead of his GOP rivals when it comes to fundraising. He raised $18 million in the 2nd Quarter.

Vin Weber, Pawlenty's co-char for president, says GOP Rep. Michele Bachmann is going to be very difficult to beat in Iowa. Weber was also forced to apologize for telling The Hill that Bachmann has "sex appeal."

Pawlenty chided Weber over his comments.

Pawlenty is holding a Facebook town hall in Iowa today.

Salon's Steve Kornacki compares Pawlenty to Phil Gramm (and that's not a compliment).

Pawlenty also worked to highlight his differences with GOP Rep. Michele Bachmann. He told voters in Iowa to pick substance over style. Pawlenty said his comments weren't directed to anyone in particular.

Bachmann is getting foreign policy advice from Sen. John McCain.

Bachmann will also reportedly go on the air with TV ads in Iowa.

South Carolina Sen. Jim DeMint is disappointed Bachmann won't sign the "cut, cap, balance" pledge to slash spending and balance the budget.

Public funds dwindle for the 2012 campaign.

Mike Huckabee says he's still neutral in the race.

Finally

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