MADISON, WI (WTAQ) - Wisconsin homeowners would get their property and income taxes cut by an average of $150 a year, under a plan Governor Scott Walker will spell out tonight.
Walker told Milwaukee and Madison newspaper reporters Tuesday that he'll devote just over half of the projected budget surplus -- or $504 million -- to tax relief.
The Republican Walker will give more details in his annual State of the State address this evening.
The property tax cut would be $101 a year on a home assessed at $151,000. The income tax cut would average $44 to $58 per filer.
Walker also wants to end the practice of withholding too much in taxes. It would give workers more money to spend now, but smaller refunds or higher tax obligations in the spring.
The governor also said he would add just over $100 million to the state's rainy day fund for emergencies.
His proposal would add about $100 million to the projected $725 million deficit in the next budget. That goes against desires by Democrats and some Senate Republicans to scale down the deficit.
Walker and Assembly Republicans don't agree that the structural deficit for 2015 will be a problem. They believe that cutting taxes now would create enough economic growth to cover the shortfall.
GOP Senate President Mike Ellis said he wants to cut taxes without jeopardizing the state's long-term fiscal health. Assembly Speaker Robin Vos said the Republicans in his caucus are, "united" in having the surplus go to tax relief -- and he does not Walker's proposal to go any lower.
(Story courtesy of Wheeler News Service)