LA CROSSE, Wisconsin (WXOW) -- In his February 20 budget address, Governor Scott Walker proposed investing $343-million of the state's current surplus, estimated at just less than $500-million, into a middle class tax cut.
A family of four earning roughly $80-thousand annually would see about $106 in savings for both 2013 and 2014, totaling $212 for the duration of the state's next budget.
Richard Chandler, the Secretary of Wisconsin's Department of Revenue, said he's confident the proposal would stimulate the economy if passed.
"By putting more money into peoples' pockets and making our state more competitive with other states in terms of taxes, we will definitely be helping the economy improve," Chandler said.
"We think, for the typical family seeing a tax cut of more than $200 over two years, that's significant," Chandler said.
The Governor has called for lowering tax rates on three of Wisconsin's five income tax brackets.
The lowest bracket would pay a rate of 4.5 percent as opposed to the current, 4.6 percent marginal rate.
The second lowest bracket would pay 5.94 percent -- down from the current rate of 6.15 percent.
Finally, the state's middle tax bracket would see its marginal rate drop from 6.5 percent to 6.36 percent.
But State Rep. Steve Doyle (D-Onalaska) is not convinced the proposal will work as planned.
"Tax cuts in general are a good thing but an income tax cut like this, I don't think is going to help anything under the circumstances," Doyle said.
"If the average family gets $200 dollars over two years, they're not going to really see any difference," Doyle said. "It's not going to stimulate the economy or change their behavior."
