National
Report: $5 for each household under Walker’s back-to-school tax-break plan
Fellow Republicans prefer different tax break.
MADISON, Wis. — Gov. Scott Walker’s proposed sales tax holiday for back-to-school shopping could return as little as $5 to the average Wisconsin shopper.
That, according to an analysis of the proposal by the nonpartisan Legislative Fiscal Bureau.
The report assumes that all eligible households in the state take advantage of the tax break. If only homes with children take part, the average tax cut would be $17.
The tax cut idea is included in Walker’s budget proposal.
The Legislature’s budget-writing committee has yet to vote on the idea.
Republican members of the budget-writing Joint Finance Committee said Friday they want to divert the $17 million cost of the sales tax holiday and instead use it to reduce or potentially eliminate the personal property tax.
Tax cut holidays are in effect in 17 other states.
Supporters say they help generate sales and help businesses, but opponents say they simply change the timing of purchases that would have otherwise happened.