Walker to propose tax cut?

Governor Scott Walker says he will try to cut taxes in the next state budget. Walker told the Milwaukee Rotary Club Monday that one of his targets for the state is to lower what he calls the income tax burden.

Walker says many small and mid-sized businesses in Wisconsin pay individual income taxes, and that high tax rates for those firms curb job growth.

"That's money right out of the hands of job creators," he said. "It’s money that otherwise would go right back into investing in the capital investments that put people back to work in this state."

Walker says he would also like to lower the taxes that senior citizens pay on retirement income, so the seniors do not leave Wisconsin.

"You know every time someone goes to Naples, or to Vero Beach, or to Phoenix, that’s money that goes out of their church or synagogue," Walker said. "That’s money that goes away from the zoo and the parks and every other philanthropic operation here. That’s money we need to bring back to the state of Wisconsin."

Walker insists the state budget would be okay, because he says revenues would go up if more people have jobs and are paying more in sales taxes. State Assembly Democratic Leader Peter Barca says the legislature should look at the tax structure. Barca says Walker raised taxes last year on low-income people by trimming the earned income tax credit and hiked taxes on seniors by reducing the homestead credit.

"I worry that whatever tax relief we provide, that he also makes sure those of modest means don’t end up paying through more taxes," he said.

Barca says balancing the state budget may depend on how deeply Gov. Walker wants to cut income taxes. Walker says it is nearing time to cut income taxes in Wisconsin.

Tags: business, wisconsin