MacIver News Service | May 17, 2019
MADISON — A new Legislative Fiscal Bureau memo shows state tax collections over the next three years will come in $753 million higher than previously anticipated. It is yet another reminder that cutting taxes grows the economy and creates prosperity for all.
Highlights of the memo include:
- Increased economic activity will lead to a $460 million increase in individual income tax collections and a $610 million increase in corporate income/franchise tax collections between the 2018-2019 and 2020-2021 fiscal years;
- The 2018-19 general fund balance is expected to grow from $691.5 million, as estimated in January, to more than $1 billion by June 30, the end of the fiscal year;
- The 2018-19 deposit to the Rainy Day Fund is now expected to be a whopping $291.1 million, bringing the fund’s balance to $615.5 million and helping to guard against future budget shortfalls;
- Nationally, personal income is expected to grow between 4 and 5 percent each year through 2021, and the unemployment rate is expected to drop to 3.5 percent in 2020.
In response, MacIver Institute President Brett Healy issued the following statement:
“Thanks to tax cuts at the state and federal levels, as well as conservative budgeting here in Wisconsin over the last eight years, Wisconsin is heading in the right direction. The news that the state is expecting over $700 million more in revenue thanks to a hot economy and full employment is incredible. It also should serve as a reminder to Gov. Evers that lower taxes, sensible regulation, and prudent government spending is a recipe for economic growth and prosperity for all Wisconsinites.”
“Unfortunately, Gov. Evers’ budget would take Wisconsin backwards. Hopefully, with this news, Gov. Evers will see the error of his ways and join with legislative Republicans to cut taxes even further to keep this impressive and unprecedented economic growth chugging forward.”