MADISON, Wis (WRN) Assembly committee hears public testimony on the governor’s half billion dollar tax cut proposal.
Wisconsin Department of Revenue Secretary Rick Chandler tells members of the Assembly Committee on Jobs that, overall, the special session legislative package will provide significant tax relief to homeowners and low-income taxpayers.
“The total tax relief in the past two legislative sessions, once this legislation that we’re recommending is acted on, will be roughly $2 billion.” Chandler repeats, “That’s right, $2 billion. Billion with a b.”
Under Governor Walker’s $504 million tax relief plan, the average homeowner would get a $101 property tax break over the next 17 months. Also, Chandler explains, one proposal includes cutting the lowest income tax bracket from 4.4 percent to 4.0 percent.
“This will benefit all taxpayers. A median income family will see savings of $58 in tax year 2014.”The governor’s plan would also add about $100 million to the state’s rainy day fund, and direct $35 million in existing state funds toward worker training and technical college programs. The tax cut is the result of an estimated $911 million budget surplus at the end of the current budget biennium in 2015. Democrats argue the money could be better spent elsewhere or saved.
The Senate is not in total agreement with Assembly leaders. Walker told reporters Wednesday he is open to making “tweaks” to his proposal. A vote on the measure is expected on Thursday. The full Assembly could take it up next week.