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Bill would restore Earned Income Tax Credit

April 16, 2013 By
PHOTO: WRN

PHOTO: WRN

A “Tax Day” proposal to restore the state Earned Income Tax Credit. It’s from state Representative Daniel Riemer, a first-term Democrat from Milwaukee. “Families across Wisconsin will be better able to pay the rent or keep up on the mortgage, buy groceries and purchase other necessities,” said Riemer. “The EITC is not a handout. It rewards working individuals who find a job, stayed employed, take on extra hours, or find an extra job.”

Governor Scott Walker included the EITC reduction in his 2011 state budget. Riemer is also proposing to restore reductions to the popular Homestead Tax Credit, which were also part of the last state budget. He announced the bills during a Capitol press conference coordinated by Citizen Action of Wisconsin.

The EITC reduction “hits families with three or more children the hardest,” said Ken Taylor, Executive Director of the Wisconsin Council on Children and Families. “A single mom with three kids making minimum wage loses about $518. That’s 21 percent of her previous credit.” Lisa Subeck is a Madison Alder and executive director of the group United Wisconsin. “When we talk about the Earned Income Tax Credit, we are talking about putting real money back in real peoples’ pockets. Money that they can spend in this economy.”

Riemer said his proposed EITC legislation would carry a cost to the state of $54-million over the two-year budget cycle. With Republicans in control of the legislature, the bill has little prospect of receiving a public hearing.

 

Filed Under: Children & Families, Legislature, News, Taxes

Tax day arrives

April 15, 2013 By

It’s tax day and, despite having months to prepare, plenty of people are expected to wait until the last minute to file their returns.

Taxpayers have until midnight tonight to submit returns electronically or to have them postmarked. For those who can’t make that deadline, state Department of Revenue Secretary Rick Chandler says they should file for an extension.

AUDIO: Sec. Rick Chandler

Extensions should be filed with the IRS, which will automatically apply to state returns as well. The extension lasts through October 15th.

However, Chandler says you will still need to pay any taxes owed by today’s deadline, even if it’s just an estimated amount. Those who fail to make that payment will be owe interest. The state charges an interest rate of one percent a month, until the amount due is paid in full.

Filed Under: News, Taxes

Time running out for tax filers

April 9, 2013 By

The clock is ticking for Wisconsin residents who still have not filed their tax returns this spring. The deadline for submitting those state and federal returns is April 15th, less than a week away.

State Department of Revenue Secretary Rick Chandler says they are expecting that last minute rush, with over a million returns still outstanding as of the start of April. He says individuals who still need to file should consider taking advantage of the state’s free e-file service, which can provide a quick turnaround on processing a return and issuing any refund that’s owed.

AUDIO: Sec. Chandler (:14)

Of the roughly 1.8 million returns filed so far this year, about 83 percent were done using e-file. While there’s no cost to file electronically with the state, Chandler says many federal returns will need to be done using commercial products. A list of those is available on the IRS website.

Taxpayers unable to meet the April 15th deadline should file for an extension with the IRS, which will automatically push back the state deadline to October as well. Chandler notes that you will still need to pay estimated taxes if you owe money, or you could face interest charges.

Filed Under: News, Taxes

Lawmaker wants tax break for private school parents

April 2, 2013 By

A state lawmaker is renewing a push to give families with kids in private schools a tax break.

State Representative Dean Kaufert (R-Neenah) says the parents of children in private school don’t get to take advantage of the money that goes to public education. So, the Neenah Republican is co-sponsoring legislation that offers a $1,500 tax credit for students in elementary school and $2,500 for those in high school.

Kaufert says he is not pushing his bill as an alternative to the governor’s proposal to expand private school vouchers, which he does not support. However, he says it could be a viable alternative if the voucher plan is removed from the state budget.

AUDIO: Rep. Dean Kauftert (:11)

Kaufert admits the legislation does not come cheap. When fully implemented after about ten years, it’s estimated the tax credits would cost the state about $140 million a year.

Rick Schuh, WHBY

Filed Under: Education, Legislature, News, Taxes

Walker disclaims plans to hike sales tax

February 6, 2013 By

Governor Scott Walker says he won’t jack up the state sales tax in the upcoming budget.

Governors in other states are discussing a sales tax increase to help reduce or eliminate income taxes. Administration Secretary Mike Huebsch on Tuesday said Governor Walker “is considering” raising the sales tax by 8 cents — up to 13 percent from its current rate of 5 percent. Walker told reporters on Wednesday such a proposal is not in the new budget he plans to introduce later this month. “No, it won’t come up in the budget.”

But maybe later. “In terms of going forward, I’m open, going into the next budget and ultimately which means the next election having a wide open discussion about tax reform … but I don’t have a specific plan.”

Walker will keep an eye on progress in other states, saying there are “some interesting ideas being kicked around” in Louisiana, Nevada, and elsewhere; and in a couple of years Wisconsin will have the benefit of seeing the result of those ideas.

Regarding a state sales tax hike in Wisconsin, Assembly Speaker Robin Vos (R-Rochester) told reporters, “That is not on the table in Wisconsin. So, that is not on the table. It’s just an interesting discussion of what other states are doing.”

Opponents say a sales tax increase would harm low and middle income families.

Filed Under: Budget, News, Politics & Government, Taxes
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