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Doyle gives $2.3 billion tax credit

Making Work Pay Credit expected to give citizens extra cash in upcoming paycheck

Wisconsin citizens will see a tax relief starting in April after the federal government promised a $2.3 billion tax credit through the Making Work Pay Credit as a part of the American Recovery and Reinvestment Act.

On Friday, Gov. Jim Doyle announced a credit that will benefit Wisconsin workers as part of an estimated $5.2 billion in tax savings that will span over the next three years.

“President Obama knows our hardworking families are facing difficult times,” Doyle said in a statement. “The Making Work Pay Credit cuts taxes for millions of workers in the state and will provide a much needed financial boost to Wisconsin families.”

Lee Sensenbrenner, spokesperson for Doyle, said the American Recovery and Reinvestment Act has many dimensions created to spur the economy, adding that Wisconsin families will see additional money in their paychecks next month, an average credit of about $506.

“What the credit does is target middle class working families, puts more money into their paycheck because that’s where it looks like it’ll do the most good,” Sensenbrenner said.

Although speculations about the tax credit’s impact are optimistic, Republicans are hesitant to support it without more specifics.

Kimberly Liedl, spokesperson for Senate Minority Leader Scott Fitzgerald, R-Juneau, said he feels the credit is a step in the right direction toward helping Wisconsin citizens, but added past legislation has hindered family incomes and business growth.

“With some of the legislation being pushed at the federal level and at the state level, it really has a deep impact on employers,” Liedl, said “So while this tax credit sounds like it will be a good thing, we need to make sure that we also aren’t harming our businesses and driving them out of our state or out of our country.”

Liedl also stressed Fitzgerald’s stance on helping hard-working citizens of Wisconsin and continuing to support businesses, saying he hopes to make sure all the money will be helpful and keep local business going.

According to the governor, the credit is considered refundable and is focused at those who earn less than $75,000, decreasing for those who earn more than that amount.