By TODD RICHMOND
MADISON, Wis. (AP) — Wisconsin companies will get a small tax break for every new job they add under a bill signed Friday by Gov. Scott Walker.
The deductions will be worth between $92 and $316 per job depending on the size of the company and its tax bracket, according to the Legislative Fiscal Bureau. The Republican-authored plan will cost $67 million over the next two-year budget, contributing to the state’s projected $3.2 billion shortfall.
Walker promised tax cuts for businesses on the campaign trail and introduced the bill as part of his jobs-creation agenda. He hasn’t said how he plans to make up the lost revenue, and Democrats have blasted the cuts as too insignificant to stimulate job creation.
Walker said the bill was one step in his agenda, and when businesses consider his plan as a whole they’ll see his administration and Republican lawmakers are serious about helping them and reviving the state’s economy.
“This is part of changing the climate,” Walker said before he signed the bill in front of manufacturing equipment at Saris Cycling Group, a Madison factory that produces bike racks. “For us, it’s a state of mind. There’s no one bill that will make or break the business climate. (But) we want to show … Wisconsin government gets it.”
Walker, who has been in office for about a month, has been pushing his agenda forward at breakneck speed.
He signed two other tax cut bills in January. One wipes out corporate and personal income taxes for companies that relocate to Wisconsin and would cost the state about $1 million. The other eliminated state income taxes on contributions to health savings accounts and will cost the state $49 million.
His fellow Republicans are in control of both houses of the Legislature.