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Sources: Walker to Use Surplus for Big Tax Cut
By Wisconsin School Administrators Alliance staff | January 16, 2014
Gov. Scott Walker will consider using a big surplus for a cut income and property taxes, sources say.
New revenue numbers for the 2013-15 biennium weren’t yet finalized as of this afternoon. But one administration source pegged the range for revenue growth at between $800 million and $1 billion.
Walker won’t release final details of his plan until next week’s State of the State address. But lawmakers quickly reacted to the suggestion to dedicate the money to tax relief.
Senate Majority Leader Scott Fitzgerald, R-Juneau, said lawmakers and the guv will work together to pay the state’s bills, return money to taxpayers and set some aside in the rainy day fund.
“As a result of our focus on improving our business climate and easing the tax burden on Wisconsin families, our state’s economy is expanding and more people are finding work,” Fitzgerald said.
Senate Minority Leader Chris Larson, D-Milwaukee, countered history suggests Walker’s plan will primarily benefit the rich. He also bemoaned the state’s mediocre job growth numbers.
“Wisconsin should commit itself to long-term solutions instead of short-sighted gimmicks,” Larson said. “Wisconsin citizens want us to again prioritize Wisconsin’s future by reinvesting in the areas that have been ignored the last three years, including K-12 education, technical colleges and making higher education affordable.”
Walker chief of staff Eric Schutt said details of Walker’s plan are still under discussion.
If a tax cut plan is signed into law, it would mark the third tax cut in the past year after income rates were reduced in the budget and lawmakers approved a $100 million property tax cut in early fall.
“His preference would be to return money to taxpayers,” Schutt said. “The vehicle to do that is property and/or income taxes.”
Walker’s options on the property tax could include directing money through the various formulas that impact local levies.
On the income tax, he could change withholding tables, which would provide an immediate impact as Wisconsinites saw more money in their paychecks. He also could push for another cut in rates to follow up the reductions approved in the 2013-15 budget. Some of that discussion will depend on the final revenue figures, sources say.
Lawmakers have also pushed a series of tax breaks in recent weeks, including the elimination of the alternative minimum tax and exempting aircraft maintenance from the sales tax.
See Journal Sentinel article here.
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