Marathon Pundit: Tax cuts coming to Wisconsin

Thursday, January 27, 2011

Tax cuts coming to Wisconsin

In addition to raising its personal income tax by 67 percent, Illinois' corporate income tax rate is going up by 46 percent. Meanwhile, Wisconsin is cutting its corporate taxes.

From the Milwaukee Journal:

The bill is a key part of Walker's special legislative session on boosting job creation and the state economy, but also will add to the state's already substantial budget shortfall.

Under the bill, businesses with sales of up to $5 million annually would receive a tax deduction of $4,000 for each job they create. Businesses with sales of more than $5 million a year would receive a deduction of $2,000 for each job they create.

Overall, the proposal would save businesses an estimated $33.5 million a year in taxes and cost the state that amount in lost revenue. The actual state tax savings per job would amount to between $92 and $316, depending on how the business owner files and what tax rate applies to him or her, according to an analysis by the nonpartisan Legislative Fiscal Bureau.

Sen. Terry Moulton (R-Chippewa Falls) said that he believed these modest decreases in taxes could lead some businesses to hire more workers.