MADISON, Wis. — The two-year state budget passed by the Republican-controlled Assembly on a 55-42 vote now heads to the state Senate for an expected vote on Thursday. If it passes there in identical form, it then heads to Gov. Scott Walker who can sign it, veto all of it, or veto any individual items he opposes. The Legislature has the option to override Walker's vetoes.
Here are some highlights of what's in the budget:
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INCOME TAX CUT
Income taxes would be cut by about $650 million over the next two years, rates in all brackets would be cut, and the number of brackets would shrink from five to four. The lowest rate would drop from 4.6 percent to 4.4 percent while the top rate would go from 7.75 percent to 7.65 percent. The third and fourth brackets would be compressed, meaning anyone who earns between $28,650 and $315,460 would receive a 6.27 percent tax cut.
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SCHOOL VOUCHERS
The private school voucher program, currently offered only in Racine and Milwaukee, would extend statewide. Vouchers allow public school students to attend private and religious schools using a taxpayer-funded subsidy.