Is cutting income taxes best use of online sales tax windfall?

What would you spend your money on if you suddenly hit a big lottery jackpot? The state of Wisconsin may be in a position to find out. Thanks to a ruling by the United States Supreme Court, the state could be in line for millions of dollars in unexpected new revenue. The ruling allows state’s to begin charging sales tax on internet purchases, which largely were previously untaxed. It is estimated that could mean an additional $187 million in new sales taxes collected in the state. What should Wisconsin do with all that money? Governor Walker has an idea. In fact, he put that in place several years ago when he signed a law mandating that any increase in sales tax collections be used to decrease income taxes people pay. It would be helpful to put more money in people’s pockets. But is that the best use of this money? That $187 million would be enough to pay every school district in the state $84,000. Or it would be enough to make permanent the $100 per child tax rebate available to Wisconsin taxpayers this year. It would be enough to double the school safety grants Wisconsin is providing to the state’s schools. But one thing Walker hasn’t mentioned is to spend the money in a way that benefits everyone in the state, by fixing our roads. $187 million would sure fill a lot of potholes.