Governor Scott Walker signed his package of tax cuts into law in a ceremony at a Shawano County farm on Monday. It includes more than $500 million in property and income tax cuts. The governor’s office has said that the average Wisconsin homeowner can expect to see $100 reduction in 2014 property taxes.
The bill also adjusts withholding for state income taxes. Beginning in April, a typical household with two working parents can expect to see $55 in their paychecks, according to Walker.
The tax cuts were proposed after the state reported a surplus of more than $900 million. When it comes to assessing the impact of the tax cuts, Todd Berry with the Wisconsin Taxpayers Alliance says it’s important to remember that things can change.
“When we went into recession in 2008, about $800 million of expected tax revenue disappeared in a matter of months, if not week. Surprises can come rather quickly,” Berry said. “The thinking is that we will now end this biennium with a surplus of a little over $100 million, which to be honest is a lot to the average person but in a budget of $15 billion it’s not much of a cushion.”