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Fiscal Cliff Fix Means $219 Million Less in Next Biennium
By Wisconsin School Administrators Alliance staff | January 3, 2013
Congress’ fix for the fiscal cliff is likely to cost the state $219 million in the next biennium.
The DOA revenue projection released late last year included $219 million in anticipated money from the return of the state’s estate tax. But the fiscal cliff deal extends the federal tax, making estates up to $5 million tax free while raising the top rate to 40 percent for those valued above that mark.
Legislative Fiscal Bureau Director Bob Lang said everything he’d seen so far today on the federal bill indicates the extension of the federal estate tax will prevent the state tax from kicking back in.
DOA estimated in November the state would have $1.5 billion in new general purpose revenue over the upcoming biennium, including the $219 million.
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