Tax cuts for small business and middle class

CREATED Jan. 15, 2013

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MADISON - Tax cuts for small businesses and the middle class are on the agenda for Wisconsin lawmakers.

Governor Walker was talking about it during his State of the State speech in Madison.

"I believe that putting more money in the hands of the people-instead of the government-is good for the economy," said Walker.

And Mary Rose was talking about it on Main Street in Oconomowoc.

"Tax reduction would be a phenomenal benefit to us."

Mary Rose opened Willows Gallery a year ago. The store is named after her dog Willow, but she hopes lawmakers will throw small businesses and middles class taxpayers a bone in the form of an income tax cut. It comes as taxpayers are seeing their federal taxes go up.

"If I benefit from it, every other artist who is in here will benefit, because we have a lot artists here who are struggling business people as well," said Mary Rose.

Walker's push to cut income taxes comes after a tumultuous two years with Democrats. But for now his idea is getting bi-partisan applause.

Details of the income tax cut still have to be worked out. But I'm told middle class earners between $20,000 and $200,000 a year could see a tax cut of about a couple hundred dollars a year.

" If we do it that way, everybody who pays taxes in Wisconsin will get a reduction," said Assembly Speaker Robin Vos, "and at the same time it's going to be meaningful so that people will feel it by the end of the year."

"Who wouldn't be excited about tax cuts for the middle class," said State Senator Lena Taylor. "But how do you do that with the financial situation that we are in and after the historical cuts that happened to education?"

Republicans control both houses so the votes should be there to cuts taxes.