MILWAUKEE -- The fiscal cliff will be felt in Wisconsin. Congress pulled the country back from the fall late Tuesday night, January 1st as the House approved a Senate deal. However, it left spending cuts in limbo for two months -- leaving the state of Wisconsin in limbo as well.
The fiscal cliff deal approved by the House and Senate puts off debate about the automatic domestic and military spending cuts for two months. Without knowing what those cuts will be and how they will impact Wisconsin, Gov. Scott Walker will have to do some creative configuration of his initial budget.
"It will be tough for the budget. We will present it a month from now in February. Certainly we'll work with members of the Legislature because the final budget has to be approved by June 30th. By the time our fiscal year begins on July 1st, hopefully we'll have a better idea of what the impact is from the federal government," Gov. Walker said.
Gov. Walker was in Milwaukee on Wednesday, January 2nd visiting Phoenix Products Company for an event on mining. He says he's concerned about cuts from the federal government, but also the impact of the compromise legislation on the state and national economy.
"I'm still concerned that taking more money out of the hands of american taxpayers, I still don't believe is the right way to further the economy and the growth that we've seen slowly over the last couple of years," Gov. Walker said.
The compromise bill keeps tax rates the same for couples making less than $450,000. Gov. Walker is concerned about the wealthier taxpayers.
"We may have to be more aggressive in our tax cuts to offset for some of the money the federal government's taking out of the pockets of our taxpayers," Gov. Walker said.
Gov. Walker says when he was at the White House last month, he mentioned to President Obama his concern about the tax increases for wealthier Americans.