Give the surplus back to Wisconsin taxpayers
The state of our state is strong and improving every day. The economy is dramatically better, and our finances are in great shape. Still, there is more work to be done.
Thankfully, the days of double-digit tax increases, billion-dollar deficits and major job loss are gone. We replaced them with massive tax cuts, growing budget surpluses and significant job growth. Wisconsin is going back to work.
We have some really great news about the economy and our fiscal situation. The nonpartisan Legislative Fiscal Bureau recently verified that the state will have $911 million more than previously projected. These new revenues are not a one-time windfall, or budget gimmick, but come from a strong economic recovery, in which more people are working, more employers are hiring and personal income is going up. They also come from good stewardship of the taxpayers' money.
What do you do with a surplus? Give it back to the people who earned it. It's your money.
In my "state of the state" address on Wednesday, I outlined our "Blueprint for Prosperity," which puts more than $800 million back into the hands of the hardworking taxpayers all across the state through tax cuts and withholding changes.
First, the plan cuts property taxes by $406 million. This is four times larger than the property tax relief we passed last year, and it's vitally important in protecting working families, senior citizens, farmers and small businesses. The typical homeowner will see a reduction of $101 on his or her next property tax bill.
Second, our plan cuts income taxes by nearly $100 million. We're not going to leave anyone behind in this economic recovery, so this tax cut is targeted to the lowest income tax bracket. If you're a family making $40,000, your savings will be about $58 annually. No one will see bigger savings than that.
Third, I directed our secretary of the Department of Revenue, Rick Chandler, to reduce the amount of state income taxes withheld on paychecks by about $322 million starting April 1, so you can keep more of your hard-earned money. This will put more money back into the hands of consumers and continue to stimulate our state's economy. A typical family of four will see about $58 more in their paychecks every month. By the end of this year, that's more than $520.
In addition, the plan also places more than $100 million into the state's rainy day fund. With this addition, the fund will be seven times larger than it was at any other point before I took office.
As I mentioned before, this surplus is in large part due to a growing Wisconsin economy. According to quarterly and monthly job reports, more than 100,000 jobs have been created in Wisconsin since we took office. We want to build upon this significant growth, which is why our "Blueprint for Prosperity"
Give the surplus back to Wisconsin taxpayers
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