Promise Kept: Reducing the tax burden

Our rating was In the Works when we first examined this pledge, in January 2017, halfway into Walker's second term.

"Working families" is not a precise term, and the leading authorities on taxes in Wisconsin told us they had not done analyses on taxes on senior citizens. But there had been a series of tax cuts to that point in Walker's second term, albeit fewer than in his first term.

At that point, the second-term cuts included an income tax deduction worth $20.9 million, starting in the 2016-'17 budget year, resulting from an increase in the standard deduction for married filers. And there was property tax relief worth $213 million, starting the same time, through a reduction in property taxes that were the result of increases in school aids and school levy tax credits.

Property taxes are particularly important to senior citizens on fixed incomes and they clearly are a big bite for working families, including renters who arguably pay them indirectly.

So, what about the second half of Walker's second term?

Under Walker's 2017-'19 state budget, property taxes on the median value home worth $160,600 would remain at roughly $2,851 in the first year, and then would drop $22 the next year, according to the nonpartisan state Legislative Fiscal Bureau.

It's worth noting that the budget also helps more well-to-do folks. It reduces property taxes on business machinery by $74 million and eliminates the state's $8.5 million alternative minimum tax, which is mostly paid by upper-income taxpayers.

Overall, according to the fiscal bureau, there are some tax increases as well as decreases. But the net change in taxes for the 2017-'19 budget is a drop of $147.4 million during the two-year period. That far exceeds a net increase in fees of $10.6 million.

Tax increases: One of the larger tax increases — $20.3 million over the two years — results from limiting a tax credit that individuals can claim for paying taxes to other states. Also, there is a tax increase of $10.2 million by limiting which people can claim the homestead tax credit.

Tax decreases: The largest tax cut  — $180.9 million over two years  — comes from eliminating what is known as the forestry tax, which amounted to a state property tax.  Another $10 million is cut by repealing what is known as the ambulatory surgical center assessment.

Separately, there are a couple of actions outside of the budget to consider:

Walker and the Republican-led Legislature adopted in April 2018 a tax bill that included a one-time $100 per child tax rebate to parents and a one-time weekend sales tax holiday for all consumers.

In July 2018, Walker said his administration would begin collecting online sales taxes. It's estimated that will bring in $90 million in the first year. But Walker has said that whatever the amount, income tax rates would be reduced so that there is no net increase in tax revenue to the state.

Finally, another way to think about it: General fund taxes  — which includes primarily income and sales taxes, along with miscellaneous taxes  — were a total of $133.9 million less during Walker's second term as a result of tax law changes made under Walker, fiscal bureau director Bob Lang told us.

Our rating

In sum, Walker generally continued to reduce the tax burden during his second term. We rate this pledge Promise Kept.