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Saturday, February 26, 2011

The tax consequences of the recent Wisconsin policy measures

By the legislative fiscal Bureau, roughly comparable to the Congressional Budget Office evaluation (p.11) notes the tax consequences of revenue for the three accounts under the current Administration:

Our assessments include the impact of all the changes law enacted years ago and three January 2011 special session bills: SB 2 (a) SS, federalizes the treatment of health savings accounts. (b) SS AB 3, which will create an income and franchise tax deduction or credit to businesses that relocate to Wisconsin, and (c) SS AB 7, which could create an income and franchise tax rebate for businesses increased employment in that State. SS SB 2 was established by the law as 2011 practice 1. The other two bills have passed both chambers of the legislature and the Governor has indicated that it will sign them. It is estimated that, together, these three accounts will reduce General Fund tax collections by $ 50.0 million in 2011-12 and $ 62.0 million 2012-2013.

This means approximately 117.2 million dollars from any shortfall over the next two fiscal years is a direct consequence of the measures which are merely placed into effect by the current administration.

More about this from Forbes.

It is interesting to inspect the legislative fiscal Bureau Tabulation from the remainder of fiscal year 2010-11.

legfiscbu0.gif
Source: legislative fiscal Office (Jan. 31, 2011).

View the original article here

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