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Mon: House Tax Package
posted at 2009-06-08 19:35 | Last modified 2009-06-08 23:04
House Finance chair Paul Luebke confirms a $940M revenue package will roll out in his committee tomorrow morning. The highlights:
- A quarter-cent sales tax increase (permanent, not temporary)
- The sales tax base would be widened to include warranties, installations, and service.
- Income tax for $200K to $500K would go up a quarter half percent from 7.75% to 8.25%. For earners over $500K, it’s a half three-quarter percent increase to 8.5%. (That’s two new tax brackets, if you’re playing along at home.)
- Cigarette tax would jump 25 cents per pack (it’s 35 cents now).
- Alcohol tax – there is one, but I don’t know details yet.
Luebke says the revenue is directly attached to restoring specific cuts in the HHS, Educ., and JPS budgets – Medicaid reimbursement, mental health services, speech therapy, K-3 class size and/or teachers' aides. He says subcomm heads have already submitted their shortlist of priorities. The more revenue they can come up with, the more cuts they can restore.
UPDATE: Here's the raw audio of Luebke's explanation to reporters (8:50).
Listen Now!
House Finance meets at 8:30am in 544 (audio here). Luebke says there will be full debate, and amendments too, no doubt, but “We’re looking to pass the bill tomorrow.” If it's approved, the tax package will go over to Approps to be wrapped into the budget bill as an amendment.
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