New ideas added to child tax credit - WKOW 27: Madison, WI Breaking News, Weather and Sports

New ideas added to child tax credit

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MADISON (WKOW) -- Governor Walker announced a modified proposal to the child tax credit. Not only would families get a $100 per child, but now a holiday sales tax exemption is included. Senate Majority Leader Scott Fitzgerald says he’s not clear how many of his members will support it.

“I didn't feel comfortable walking out of the governor’s office yesterday,” Fitzgerald said. “I wouldn’t count the Senate in because we didn't have that discussion. I think a lot of members will weigh in on it and see if they support it or not."

Under the proposal families would not have to pay the state's 5% sales tax on certain items like shoes, clothes and school supplies. If you have children under 18 you could apply online to get the credit. There is no income requirement. Estimates show it could cost the state about 122 million.

Sen. Jon Erpenbach (D-Middleton) and other democrats say Walker’s plan is an election stunt.

"It could actually cost businesses more than what it's worth, so for me this is a situation where lets give a 100$ a per kid give-- lets do a sales tax holiday --  lets do anything we can to get this governor reelected is what it's coming down to," said Erpenbach.

Assembly Speaker Robin Vos is on board and members of his own caucus say the idea is nothing new.

"The holiday proposed tax, that idea was in the budget last year or at least the last couple of years, it's not a new topic so it's not earth shattering so will look at the details," said John Nygren (R - Marinette).

Sen. Fizgerald says he has a backup plan if members don't show support.

"As a fall back I'm drafting it without the holiday sales tax provision in it,” said Fitzgerald. “You wonder what the impact is, does it in fact help retailers, do people take advantage of it. Those are the types of questions people are asking."

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