Tax deductions for job creation passes committee (UPDATE)

MADISON, Wis. (AP) — Wisconsin businesses would be eligible for a tax deduction for every new job under a bill that has passed the Legislature’s budget committee.

The proposal that passed Thursday would cost $67 million over the next two years and extend tax benefits ranging from $92 to $316 for each job created.

The Republican-backed proposal would give a $4,000 income tax deduction for every job created by a company with less than $5 million a year in gross receipts a year. The deduction drops to $2,000 per job for companies with more than $5 million a year in receipts.

Democrats say the credits are too small to motivate companies to add employees.

Gov. Scott Walker supports the measure and the Republican-controlled Legislature could pass it next week.