Budget committee passes plan for income tax cuts - WAOW - Newsline 9, Wausau News, Weather, Sports

Budget committee passes plan for income tax cuts


We could see some major changes with the new state budget. The plan is now on its way to the state assembly. It passed in a 12-4 vote.

A budget committee approved cutting income taxes about $650 million, which would span during the next two years.

All republicans voted for the budget plan, while all democrats were against it.

It was a marathon session, including a proposal to cut income taxes across the board. Wisconsin republicans say it's the right move.

"I think we decided that it was a very important issue," said republican State Senator Jerry Petrowski of Marathon.

But it comes with heavy opposition. Democrats say the cuts favor the rich, and instead, say the money should go to public schools.

"That tax cut was built on the shoulders and backs of our school children and that is frankly unacceptable," said democratic State Representative Katrina Shankland of Stevens Point.

Petrowski tells Newsline 9 these tax cuts were deserved and added other areas of the budget address schools.

"I think anytime you can cut taxes, it's good. And it's good for the reason that money in people's pockets, they tend to spend it," said Petrowski.

A taxpayer making $45,000 annually would save about $85 a year under this new plan.

In February, Governor Scott Walker proposed $343 million in income tax cuts, and this new plan nearly doubles that.

"Why can't we afford to give new aid to public schools who are struggling? Why can't we afford to give some of that money to the middle class who are struggling?" Shankland told Newsline 9.

"People will be paying a lower percentage of income tax in Wisconsin, and so there's going to be a lot of people benefiting from this," said Petrowski.

Shankland said there's still work to be done.

"I would love to see the assembly and the senate scrutinize the extreme policies that found their way into the budget this morning around 6 a.m.," Shankland added.

Republicans say they're confident few changes will be made moving forward.

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