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© Joel PettProfit and Loss in America
Republicans on the Legislature's budget committee drew fire Tuesday night for approving cuts to a tax credit for low-income families, while also expanding tax breaks for businesses.

The Joint Finance Committee approved reductions to the Earned Income Tax Credit, trimming the state benefit for low-income families with multiple children. The provision in the proposed biennial budget would also increase the benefit for single child households.

Senator Bob Jauch (D-Poplar) called the changes a tax increase on the working poor. He says it creates a "caste system" where the tax code benefits those who make the most when combined with other proposals the budget panel also approved Tuesday. The additional measures allow the deferral of taxes on capital gains that are reinvested in the state and also make changes to Wisconsin's combined reporting law.

Republican co-chair Alberta Darling (R-River Hills) says those measures are a major part of efforts to restart the economic engine of the state and to create new jobs.

The Legislature is expected to vote on the complete budget later this month.