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.