Budget committee votes to pass Doyle’s budget repair

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Some of the tax increases in Gov. Jim Doyle’s next state budget would also be used to balance the current budget. And they’ll be up for final approval today in the Legislature.

Tuesday, the Joint Finance Committee voted 12-4 to close a $600 million gap in the current budget by cutting state spending, using federal stimulus money and raising taxes and fees which apply mostly to businesses.

The panel’s four Republicans all voted against the package.

A long-standing corporate income tax loophole would be closed, in which multi-state firms would have their Wisconsin income taxed here instead of a place with lower taxes.

The proposed hospital tax would take effect right away, to bring in more federal Medicaid funds as soon as possible.

The bill also includes the so-called “streamlined sales tax” which among other things, would make Wisconsinites start paying the sales tax on Internet purchases.

Also, the finance panel scrapped a plan to have only its two chairmen ratify the governor’s spending plans for the federal stimulus money.

The entire finance committee would approve the various projects. And for projects with both state and federal money, the full Legislature would have to ratify them.

Tags: wisconsin news, doyle, budget, repair