Some Wisconsin families could save $400 on college tuition next year if a tax cut proposed by Democratic Gov. Jim Doyle Thursday passes through the state budget.
The proposal increases the maximum tuition tax deduction from $4,536 to $6,000 per student at all public universities and private colleges. The governor's office said it would save the average Wisconsin family supporting two college students around $400 per year.
Doyle spokesperson Carla Vigue said the tax cut is projected to cost the state $4 million over the next two years. If approved, it would be reviewed during each biennial budget.
"Far too many families across the state are getting squeezed," Doyle said in a Feb. 8 statement. "That's why we've worked hard to make the right, responsible choices to keep life affordable for middle class families."
Jacob Stampen, University of Wisconsin professor emeritus of educational leadership and policy analysis, said the tax deduction would be an incremental step.
"What they're doing is things that won't cost a lot of money," Stampen said. "I think it's all that's politically possible at the moment."
In some ways, Stampen said, the proposal is like financial aid.
"I don't see that this is going to hurt anything," he added. "I can't argue against it."
Republican and Democratic lawmakers expressed interest in Doyle's tax deduction as well as proposed tax cuts on health care and child care.
In Appleton, Doyle announced a plan to make all health-insurance premiums tax-free and a tax deduction for any post-tax premium payments made to employer-sponsored health plans.
Doyle's office said the health-care initiative is projected to cost the state $11.8 million in the 2008-09 fiscal year.
"It's nice to finally hear the governor talking about the taxpayers for a change," said Mike Prentiss, spokesperson for Senate Minority Leader Scott Fitzgerald, R-Juneau. "We would like to see as many tax cuts as possible."
Doyle's child-care proposal includes a tax deduction up to $3,000 for families with one child in day care and up to $6,000 for families with two or more children in day care. A typical family of four would save nearly $400 on their taxes.
Doyle's office said the child-care initiative will cost the state $3.9 million in the 2008-09 fiscal year.
"From our perspective, there's a lot of good here," said Josh Wescott, spokesperson for Senate Majority Leader Judy Robson, D-Beloit. "This is direct help — putting money back in people's pockets."
Prentiss said Fitzgerald does not consider tax cuts spending because "the best thing to jump start an economy is cut taxes."