Holperin breaks with democrats, votes to approve tax cut - WAOW - Newsline 9, Wausau News, Weather, Sports

Holperin breaks with democrats, votes to approve health-related tax cut


MADISON (AP) -- The Republican-controlled Wisconsin state Senate has voted to eliminate state income taxes on contributions made to health savings accounts.

Democratic Sens. Kathleen Vinehout of Alma and Jim Holperin of Conover joined with 19 Republicans to vote for the bill Thursday. The 12 remaining Democrats voted against it.

The Assembly was expected to follow suit and pass the same bill later Thursday. The measure would bring Wisconsin into line with federal law and make contributions to HSAs tax-free.

Eliminating the tax in Wisconsin would cost about $49 million over the next two years, deepening the state's two-year $3 billion budget shortfall.

The tax break is one of new Gov. Scott Walker's priorities.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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