Budget committee approves tax code changes

The working poor could see their tax bills go up while investors and multi-state corporations could see their tax bills go down under measures approved Tuesday by Republicans on the legislature’s budget committee.

The proposal would scale back Wisconsin's Earned Income Tax Credit. It would mean a family with two kids who makes less than $46,000 could owe about $150 more on their taxes. A larger family with a combined income of up to $49,000 could see their tax bill go up by more than $500.

Democratic Rep. Jennifer Shilling called it a blatant tax increase and the wrong priority.

“This appears to be a tax increase on those who can least afford it," says Shilling.

Republicans on the committee also voted to defer Wisconsin Capital Gains tax for investors who reinvest their earnings in Wisconsin businesses. Investors who turn a profit after holding their money in a Wisconsin business would see their state capital gains tax eliminated.

Republican Senate co-chair Alberta Darling said that was a crucial component to creating jobs.

“It’s especially important for companies in Wisconsin to have people from Wisconsin invest in them,” she said.

Republicans also changed the state's combined reporting tax on multi-state corporations to lower their taxes by a $46 million over the next two years.

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