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State Budget Writers Weigh Tax, Immigration Policy

Leaders Work To Reconcile Budget Differences

Posted: 4:49 pm CDT June 20, 2009

In the next few days, Wisconsin lawmakers might decide how much taxes you pay every time you fill up your car with gas, whether you have to buy car insurance and how your business investments are taxed.

Leaders of the Assembly and Senate are working to reconcile differences over those and hundreds of other policies in the budgets they passed.

Once those differences are resolved, each house of the Legislature could approve identical versions of the budget as early as this week to send to Gov. Jim Doyle.

One of the biggest areas of disagreement relates to tax policy. The Assembly wants to create a new tax on oil companies to raise $224 million while the Senate wants to increase taxes on capital gains by even more.

Highlights Of Changes Sought To Budget

Changes by Senate Democrats that were in the budget passed by the Senate:

  • Do not impose a new tax on oil companies as Gov. Jim Doyle and the state Assembly wanted. Under the Assembly version, taxes on gas could go up by as much as 4.4 cents a gallon.

  • Remove all capital gains exclusions. Doyle wanted to lower them from 60 percent to 40 percent.

  • Do not create a new special card that would allow illegal immigrants to drive legally in Wisconsin.

  • Do not allow illegal immigrants who attend state universities and colleges to pay in-state tuition, as Doyle proposed and the Assembly agreed to do.

  • Keep the current threshold required for someone to be found partially liable for damages in a civil lawsuit at 51 percent at fault. Doyle had proposed lowering it to 1 percent, which brought an angry response from the business community warning that the threat of additional lawsuits and higher insurance costs could drive some people out of business. The Assembly rejected Doyle's proposal, and the Senate agreed.

  • Mandate that all car owners must have auto insurance. Doyle said he would support such a move. New Hampshire is the only other state that doesn't currently require drivers to carry car insurance.

  • Immediately repeal a state law known as the "qualified economic offer" that has effectively held teacher pay raises in check for 16 years. The Assembly voted to repeal it in a year.

  • Exclude a number of offenses, including kidnapping and human trafficking, from those that would be eligible for early release from prison.

  • Direct a 75-cent monthly fee on phones to be used for 911 emergency centers starting in two years.

  • Allow Ashland and Bayfield counties to levy up to a half-cent sales tax to pay for transportation needs. The Senate would concur with the Assembly in creation of similar arrangements, known as regional transit authorities, for Dane County, the Chippewa Valley, the Fox Cities and Milwaukee County. The Senate would increase the sales tax Milwaukee County could levy to 1 percent but a car rental fee to pay for a commuter rail system in Kenosha, Racine and Milwaukee counties would be set at $16. The Assembly raised it to $18.

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