Fiscal Bureau Confirms Tax Increases In Walker's Proposed Budget

Some of us have been saying for some time that Scott Walker's "no-tax-increase" 2011-2013 proposed state budget in fact raises incomes taxes on some lower-income taxpayers, and now the non-partisan Legislative Fiscal Bureau confirms it.

The information is towards the end of a Journal Sentinel budget story.

Note how neatly the Republicans say this tax increase is not a tax increase.

Walker's proposal would increase taxes by $49.4 million for low-income people, according to the fiscal bureau.

For years, the working poor who have children have qualified for a state income tax credit that is meant to boost their wages and offset Social Security taxes and other taxes they pay. Walker's proposal changes the formula so those workers would receive less in credits.

Those who qualify for the program can get money from the government even if they have no state income tax liability. According to the fiscal bureau, 77% of those who qualify for the credit do not owe any state income taxes and get a check from the state.

The remaining 23% owe state taxes and the credit lowers their liability. Under Walker's plan, they'll get less of a credit - and thus owe more in taxes.

[State Rep. Robin] Vos said he did not view that as a tax increase because it is a tax credit program, echoing past comments from the governor. Walker pledged during the campaign not to raise any taxes.